2nd Quarter 2008 Manhattan Residential Market Report Sets Million Dollar Record Despite Falling Sales

NEW YORK, July 2 /PRNewswire/ -- The just-released Second Quarter 2008 Prudential Douglas Elliman Manhattan Market Overview reveals that the number of sales continues to remain below the levels seen at this time last year, while the price indicators continue to show an increase.

"The turmoil of the credit markets has reduced buyer purchasing power, served to reduce employment in the financial services sector and is generally believed to result in reduced individual compensation next year," said Jonathan Miller, President/CEO of Miller Samuel, the firm that prepared the report. "Nevertheless, the number of sales to date in 2008 is at a higher level, and inventory is at a lower level, than seen in the same period two years ago. Rising prices are largely a product of a skew in the mix of recent closings toward higher end properties."

"We should kiss the ground that we live in New York City because the market continues to hold its own compared to the rest of the country. Credit is less available to the consumer, so sales have been slower this past quarter, but overall, New York City is a healthy market," said Dottie Herman, President and CEO, Prudential Douglas Elliman. "Manhattan is an exciting and thriving destination city that competes globally, both as a center of world business and as a desirable place to live, making it especially attractive to overseas buyers whose purchases help prices remain stable."

Highlights from the 2nd Quarter Prudential Douglas Elliman Manhattan Market Overview include:

-- Median sales price increased 14.5% to a record $1,025,000 over the prior year quarter result of $895,000.

-- Price per square foot increased 10.9% to $1,263 over the prior year quarter result of $1,139.

-- Average sales price increased 25.2% to $1,669,729 over the prior year quarter result of $1,333,316.

-- The number of sales dropped 21.8% this quarter to 3,081 units as compared to the 3,939 units sold in the prior year quarter.

-- Listing inventory increased 31.2% to 6,869 units from the prior year quarter total of 5,237 units.

-- Days on market was 135 days this quarter, more than two weeks longer than the 117 days on market average in the same period last year.

-- Listing discount was 3.6%, up from 2.2% in the same period last year.

In a separate analysis, sales at 15 Central Park West and The Plaza were removed from the data set, still resulting in increases in all price indicators as compared to their prior year quarter results: median sales price up 11.2%, price per square foot up 4.7% and average sales price up 14.1%.

Co-op Market

The median sales price of a co-op this quarter was a record $755,000, up 8.6% from last year at this time. The average price per square foot increased 16.6% to a record $1,146 from the prior year quarter, resulting in the average sales price increasing 11.2% to $1,280,201 from the same period last year. Inventory levels for co-ops increased 34.4% to 2,481 units from the prior year quarter. Co-op listings are comprised of 97.8% re-sales.

Condo Market

The median sales price of a condo this quarter was a record $1,267,000, up 21.8% from last year at this time. The average price per square foot increased 22.4% to a record $1,442 from the prior year quarter, resulting in the average sales price increasing 32.9% to $1,937,090 from the same period last year. Inventory levels for condos totaled 3,534 units, up 28.2% from the prior year quarter total, while new development comprised 47.5% market share of condo listings, up from 33.9% in the same period last year.

Luxury Market (upper 10% of all co-op and condo sales)

The median sales price of a luxury apartment this quarter was $4,950,000, up 37.5% from last year at this time. The average price per square foot increased 30.9% to $2,282 compared to the same period last year. The average sales price was $6,364,000, up 38.4% from the same period last year, while inventory dropped 31.5% to 672 units from the same period last year.

Loft Market (co-op and condo sales)

The median sales price of a loft apartment was a record $1,700,000 this quarter, up 3% from last year at this time. The average price per square foot increased 3% to a record $1,311 from the same period last year, while average sales price fell 11.9% to $2,123,780 from the same period last year.

-- The report's author, Jonathan J. Miller, President/CEO of Miller Samuel. Miller provides input for the Federal Reserve's Beige Book, and serves on the NYC Mayor's Economic Advisory Panel and the NYC Council Finance Committee Economic Advisory Board. On Matrix [matrix.millersamuel.com], he blogs about the real estate economy.

-- Dottie Herman is President & CEO of Prudential Douglas Elliman, the company that distributes the report. Prudential Douglas Elliman is New York City and Long Island's preeminent residential broker, with nearly 70 offices, over 3,300 real estate agents and a network of national and international affiliates. Herman is frequently quoted in The New York Times, The Wall Street Journal, Crain's, and The New York Post.

    Full data tables and analysis are immediately available upon request.

ABOUT THE MANHATTAN MARKET OVERVIEW

The Manhattan Market Overview is New York's first quarterly residential market report, and is developed from the largest and most sophisticated database of transactions in New York. The report was the first to track co-ops by price per square foot, to analyze square footage of all sales, to analyze the market by median sales price, to break out the market by bedrooms (Studio, 1, 2, 3, 4+), to analyze market-wide apartment inventory, to analyze days on market and absorption, to drop price per room as an obsolete market indicator, to break out sales by specific neighborhoods and to analyze the uptown co-op and condo market.

About Miller Samuel (www.millersamuel.com) -- Miller Samuel is a New York based real estate appraisal services firm established in 1986. Miller Samuel provided property valuations of more than $5,000,000,000 in the past year. The company's clients include domestic and international financial institutions, law firms, consulting firms, developers, employee relocation companies, co-op and condo boards, managing agents, individuals and government agencies. The firm developed what is now the largest database of Manhattan co-op and condo sales covering the sales market back to the late 1970s.

Prudential Douglas Elliman Real Estate is New York's largest residential brokerage, over 60 offices, more than 3,500 real estate agents and a network of national and international affiliates. Prudential Douglas Elliman, ranked in the top five of all real estate companies in the nation, closed $14 billion in sales in 2007. Prudential Douglas Elliman also controls a portfolio of real estate services, including Manhattan's largest residential property manager, Douglas Elliman Property Management, as well as PDE Title and Preferred Empire Mortgage Company. For more information on Prudential Douglas Elliman as well as expert commentary on emerging trends in the real estate industry, visit the Prudential Douglas Elliman site at www.prudentialelliman.com.