New York City Residential Market Reportmedia.bhsusa.com/pdf/BHS1Q07_Market_Report.pdf ·...

New York CityResidential Market Report

First Quarter 2007

Luxury Leads the Way

Prices for luxury apartments continued to rise sharply in the first quarter, as the average price

for four-bedroom and larger apartments achieved just over $7.9 million, 20% higher than the

first quarter of 2006. The average price for all Manhattan apartments, including co-ops and

condos of all sizes, reached $1,218,064 and was 6% higher than the fourth quarter of 2006,

but down slightly from a year ago. The marginal decline of the average price of the past year

suggests a decrease in the average size of units sold, a fact substantiated by the 2% increase of

the average price per square foot during this time to $1,023.

The median price, which provides the most stable indicator of the market, reached a record

level in the first quarter of 2007. At $770,000, this figure was 4% higher than the first quarter

of 2006. Also of note during the first quarter was a 26% growth in the number of closed sales

compared to the previous year.

The co-op market remained strong, especially on the high end, as the average price of

$7,332,797 for four-bedroom and larger co-ops was 25% higher than a year ago. The average

price for all Manhattan co-ops was $1,078,786, down 7% from the same time a year ago, but

up 13% from the fourth quarter of 2006. The median co-op price of $630,000 declined 7%

from the first quarter of 2006.

The condo market was also led by larger apartments in the first quarter of 2007, as the average

price for four-bedroom and larger condos of $8,924,645 was 22% higher than a year ago.

Fueled by robust sales in new developments, the overall median price for condo sales reached a

new record high of $970,250, 21% higher than the first quarter of 2006. The overall average

price for all condo sales of $1,386,287 was unchanged from the first quarter of 2006.

Contrary to what has been reported on the national level, the Manhattan housing market has

reflected continued strength over the past few months. A 26% increase in sales from a year ago

demonstrates that buyers remain confident in our market, due in part to favorable economic

conditions in New York City. The concern over the rapid pace of development in Manhattan

seems to have abated, as new buildings are showing solid sales and prices. With interest rates

remaining low and inventory dipping from the inflated levels of last year, the outlook for our

market remains positive.

Transaction data for this market report is provided by ValuExchange, a proprietary database containing the largest known survey of the New York City residential market. This report is based on 2,657 reported Manhattan apartment sales.

GreGory J. Heym

Chief Economist, Brown Harris Stevens

Cover Property: BrownHarrisStevens.com WEB# 421454

Manhattan Cooperatives and Condominiums

First Quarter 2007 3

4Q06 1Q071Q06 2Q06 3Q06

$1,144,063 $760,000

4+ Bedroom 3-Bedroom 2-Bedroom 1-Bedroom Studio All

1st Q 07 $7,906,260 $2,850,769 $1,441,103 $716,740 $412,753 $1,218,064

4th Q 06 $6,260,402 $3,047,126 $1,434,236 $708,230 $410,383 $1,144,063

3rd Q 06 $5,379,113 $2,707,495 $1,354,930 $702,024 $412,147 $1,087,982

2nd Q 06 $5,573,921 $3,018,858 $1,530,959 $699,364 $408,146 $1,212,453

1st Q 06 $6,605,273 $3,142,949 $1,396,168 $678,226 $402,953 $1,258,420

Average Sale Price Median Sale Price

$1,400,000

$1,200,000

$1,000,000

$800,000

$600,000

$200,000

$400,000


1st Q 07 $2,208 $1,325 $1,081 $940 $845 $1,023

4th Q 06 $1,581 $1,426 $1,114 $958 $921 $1,050

3rd Q 06 $1,587 $1,382 $1,057 $956 $925 $1,028

2nd Q 06 $1,462 $1,302 $1,078 $925 $861 $999

1st Q 06 $1,615 $1,337 $1,022 $904 $905 $1,000


1st Q 07 $863,032 $441,814 $314,928 $221,144 $190,233 $276,296

4th Q 06 $659,867 $485,491 $320,429 $222,679 $192,439 $273,791

3rd Q 06 $587,851 $407,644 $300,381 $220,895 $198,305 $265,997

2nd Q 06 $604,113 $446,539 $323,942 $221,706 $190,315 $274,724

1st Q 06 $678,997 $460,246 $302,584 $216,228 $191,573 $275,053

$1,218,064 $770,000 $1,087,982 $733,900$1,212,453 $755,000$1,258,420 $740,000At $770,000, the median

price for Manhattan apartments reached a new

high in the first quarter. Larger apartments led

pricing gains, as the average price for four-

bedroom and larger apartments was 20%

higher than a year ago.

Average and Median Sale Price

Average Sale Price

Average Price Per Square Foot

Average Price Per Room

Manhattan Cooperative Apartments

$953,120 $599,000


1st Q 07 $7,332,797 $3,037,988 $1,306,323 $604,824 $367,006 $1,078,786

4th Q 06 $6,178,656 $2,642,118 $1,236,601 $602,090 $362,748 $953,120

3rd Q 06 $4,821,935 $2,845,196 $1,249,900 $615,229 $360,053 $1,003,945

2nd Q 06 $5,875,424 $3,024,527 $1,562,758 $622,165 $361,176 $1,257,571

1st Q 06 $5,885,127 $3,098,147 $1,363,909 $622,519 $353,137 $1,159,130

$1,300,000

$1,100,000

$900,000

$700,000

$500,000

$100,000

$300,000


1st Q 07 $716,460 $430,638 $270,271 $187,333 $168,900 $235,927

4th Q 06 $566,987 $384,593 $258,976 $186,275 $166,569 $221,145

3rd Q 06 $500,984 $388,644 $262,169 $188,373 $170,580 $227,810

2nd Q 06 $571,432 $409,255 $309,073 $196,954 $170,346 $257,862

1st Q 06 $534,765 $421,589 $282,292 $196,890 $168,055 $245,903

$1,078,786 $630,000 $1,003,945 $640,000$1,257,571 $707,500$1,159,130 $677,000The average price for four-bedroom and larger co-ops of $7,332,797 was 25%

higher than during the first quarter of 2006.

4Q06 1Q071Q06 2Q06 3Q06

4 First Quarter 2007



Average Sale Price

Average Price Per Room

Manhattan Condominium Apartments

Reaching $970,250, the median price for condo

sales during the first quarter set a new record

and was 21% higher than a year ago.

$1,320,356 $950,000


1st Q 07 $8,924,645 $2,715,877 $1,570,812 $854,876 $491,751 $1,386,287

4th Q 06 $5,814,566 $3,204,207 $1,594,890 $837,887 $499,609 $1,320,356

3rd Q 06 $6,132,941 $2,586,133 $1,483,365 $797,779 $504,055 $1,196,931

2nd Q 06 $5,287,053 $3,025,415 $1,508,314 $766,910 $457,276 $1,171,972

1st Q 06 $7,300,586 $3,316,851 $1,429,517 $753,936 $472,466 $1,384,932

$1,500,000

$1,300,000

$1,100,000

$900,000

$700,000

$300,000

$500,000


1st Q 07 $2,360 $1,360 $1,159 $1,040 $908 $1,118

4th Q 06 $1,657 $1,487 $1,186 $1,059 $1,017 $1,141

3rd Q 06 $1,661 $1,426 $1,131 $1,045 $997 $1,108

2nd Q 06 $1,614 $1,397 $1,136 $987 $918 $1,061

1st Q 06 $1,740 $1,509 $1,066 $993 $998 $1,088

$1,386,287 $970,250 $1,196,931 $855,000$1,171,972 $810,000$1,384,932 $800,000

2Q06 3Q06 4Q06 1Q071Q06




Average Sale Price


Generally 59th to 96th Street, Fifth Avenue to the East River

4+Bedroom 3-Bedroom 2-Bedroom 1-Bedroom Studio

Percent of Sales

1st Q 06 7% 13% 32% 37% 11%

1st Q 07 4% 14% 29% 38% 14%

Average Price

1st Q 06 $7,043,778 $3,702,545 $1,639,523 $668,624 $367,730

1st Q 07 $8,875,796 $3,301,714 $1,481,823 $637,709 $383,297

% Change 26% -11% -10% -5% 4%

Although they accounted for fewer sales than a year ago, prices rose sharply for four-bedroom and larger

apartments on the East Side. Their average price of $8,875,796 was 26%

higher than a year ago.

$50,000

$250,000

$100,000

$150,000

$200,000

$300,000

$350,000

$0

$300

$900

$450

$600

$750

$1,050

$1,200

$150

1Q07Prewar Postwar 1Q06

$1,139 $363,055 $362,642 $1,196 $215,059 $221,934

Cooperative Condominium

east side

1Q06 1Q07


Average Price Per Room Average Price Per Square Foot

Generally 59th to 110th Street, Hudson River to West of Fifth Avenue

3+Bedroom 2-Bedroom 1-Bedroom Studio

Percent of Sales

1st Q 06 16% 33% 40% 11%

1st Q 07 14% 33% 38% 14%

Average Price

1st Q 06 $3,553,204 $1,344,020 $688,718 $414,815

1st Q 07 $3,608,506 $1,349,780 $672,838 $389,936

% Change 2% 0% -2% -6%

Condo prices remained strong on the West Side,

as their average price per square foot of $1,216 was

9% higher than 2006’s first quarter.

$50,000

$250,000

$100,000

$150,000

$200,000

$300,000

$350,000

$0

$300

$900

$450

$600

$750

$1,050

$1,200

$150


$1,216 $268,825 $238,268 $1,111 $202,214 $214,234

West side



1Q06 1Q07


midtoWn east Generally 34th to 58th Street, Fifth Avenue to the East River

Prices were generally lower in the Midtown East

market over the past year, led by a 10% decline in

the average price per square foot for condos.

midtoWn

$150,000

$0

$50,000

$100,000

$200,000

$250,000

$209,129 $173,126 $195,333 $195,398 $1,016 $1,127


$900

$300

$500

$700

$1,100

$1,300

$183,751 $155,686 $176,992 $175,511 $1,124 $979


At $1,124, the average price per square foot for condos in the Midtown West market was 15% higher than a year ago.

midtoWn West Generally 34th to 58th Street, Hudson River to West of Fifth Avenue

$150,000

$0

$50,000

$100,000

$200,000

$250,000

$900

$300

$500

$700

$1,100

$1,300




1Q06 1Q07

1Q06 1Q07



All size categories in the Downtown market posted higher average prices than the first quarter of 2006,

led by a 13% gain forone-bedrooms.


$1,021 $233,998 $233,724 $1,017 $210,808 $202,448

$50,000

$250,000

$100,000

$150,000

$200,000

$300,000

$350,000

$0

$300

$900

$450

$600

$750

$1,050

$1,300

$150



1Q06 1Q07


South of 34th Street

doWntoWn

3+Bedroom 2-Bedroom 1-Bedroom Studio

Percent of Sales

1st Q 06 9% 24% 52% 15%

1st Q 07 6% 28% 45% 21%

Average Price

1st Q 06 $2,389,484 $1,260,725 $676,649 $431,774

1st Q 07 $2,679,930 $1,378,591 $762,477 $463,387

% Change 12% 9% 13% 7%

At $1,129, the average price per square foot for

lofts sold last quarter was up 5% from a year ago.

Townhouse prices were up slightly from 2006’s

first quarter, reaching an average of $1,407 per

square foot.

4Q06 1Q071Q06 2Q06 3Q06

$700

$100

$300

$500

$900

$1,100

$1,100

$500

$700

$900

$1,300

$1,500

4Q06 1Q071Q06 2Q06 3Q06

$600

$300

$400

$500

$700

$800

4Q06 1Q071Q06 2Q06 3Q06

Apartment prices were higher than a year ago for all sizes of apartments in

Brooklyn Heights and Park Slope, led by a 7% gain for studios. The average townhouse price of $568

per square foot in these areas was down 9%

from a year ago.

Townhouses

$1,129 $1,077 $1,005 $1,048 $1,073 $1,407 $1,388 $1,266 $1,457 $1,511

$568 $623 $572 $709 $634

Manhattan Lofts Manhattan Townhouses

Brooklyn Heights and Park Slope

Average Price Per Square Foot Average Price Per Square Foot

Cooperatives and Condominiums


2-Bedroom 1-Bedroom Studio All

Average Price

1st Q 06 $689,168 $472,200 $306,545 $599,517

1st Q 07 $722,828 $474,786 $327,667 $608,944

% Change 5% 1% 7% 2%


GreGory J. Heym is the Chief Economist for

Brown Harris Stevens and serves on the City’s

Economic Advisory Panel. He has covered

the residential real estate market for the past

twelve years, and was the author of the Real

Estate Board of New York’s cooperative and

condominium sales reports prior to joining

Brown Harris Stevens. Mr. Heym’s academic

background includes a B.S. in Economics from

Saint John’s University and an M.B.A. from

Hofstra University.

©2007 by Brown Harris Stevens. All Rights Reserved. This information may not be copied, used or distributed without Brown Harris Stevens’ consent. While information is believed true, no guaranty is made of accuracy.

212.906.9200

EAST SIDE655 Madison AvenueHall F. Willkie, PresidentRuth McCoyExecutive Vice President, Managing Director of Sales UPPER EAST SIDE1121 Madison AvenuePeter MarraExecutive Vice President, Managing Director of Sales WEST SIDE1926 BroadwayJim GricarExecutive Vice President, Managing Director of Sales DOWNTOWN2 Fifth Avenue43 North Moore at Hudson StreetKevin KovesciExecutive Vice President, Managing Director of Sales

BROOKLYN HEIGHTS129 Montague StreetChristopher ThomasExecutive Vice President, Managing Director of Sales

PARK SLOPE100 Seventh AvenueMaryAnn AlbanoExecutive Vice President, Managing Director of Sales

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