While the rest of the country is suffering under the plummeting prices of the real estate market, it seems that Manhattanites have a good reason to feel protected. Although sales are down in this popular and prestigious area of New York, the strong demand for luxury living in the area has maintained the prices. The average Manhattan apartment now costs a remarkable $1.67 million. However, real estate market experts are claiming that these numbers indicate a softer real estate market here.
The volume of sales in Manhattan continues to be the same as what it was in previous years. However, the average home price is rising, making it a surprising turn of events when compared to the rest of the real estate markets in the country. Regardless, experts are saying that the constant barrage of negative press concerning the real estate market is bound to take its toll, even in places like Manhattan, where the home sales are predicted to slow.
Other industry experts disagree, however. The ordinary has never been enough for the homeowners in Manhattan and the booming luxury real estate market, a protected enclave from the rest of the troubling economy, is protecting Manhattan real estate. In other words, the world of Us versus Them has never been more prominent in New York where realtors are noticing the luxury market and the rest of the market are taking divergent paths.
Unlike the rest of the markets in the country, the average price of a Manhattan apartment rose anywhere between 25% to 36% over the last year. However, two of the most prestigious addresses in the area, 15 Central Park West and The Plaza, did not see the increase.
Overall, sales figures are down in the area. Sales were down 38% from the same time last year and overall, sales number had decreased 21.8% on a year to year average. Nevertheless, real estate experts are experiencing the higher priced property sales to help balance out the slower sales. There are elevated levels of activity reported in this real estate market overall. The luxury market is virtually unscathed by the woes of the middle range real estate market, which has slowed down by the greatest margins.
However, the negative predictions continue. There are layoffs predicted for Wall Street, which would play a large role in the luxury real estate market. There are current homeowners whose future unemployment could create a need to sell their home fast. On the other hand, industry experts point out that if you are looking for a $20 million home, you are not terrifically concerned with your mortgage payments, nor are you as apt to get into poor mortgage situations with variable interest rates.
There is a flood of luxury condominium buildings in the Manhattan market that underscores the trend of positive buying in the luxury community. With full concierge services, swimming pools, spas and more, these condos are being quickly purchased no matter what is going on with the rest of the country and its real estate market woes. As any Manhattanite will tell you, things are just different in New York City.