Real estate prices in other parts of the country may still be 20% below peak values, but it’s a different story in Manhattan. The demand for luxury apartments has helped property prices almost fully recover from the recent crisis.
During the first quarter of this year, the median sales price for a co-op or condo in Manhattan increased by 18.5% compared to the same time last year, reaching $972,000. The article in CNN Money points out that this price is more than four times the median US home price which is currently at $205,000. Elsewhere in the country, $972,000 would normally buy a large three or four bedroom home complete with garage and backyard, but in Manhattan it buys a one-bedroom apartment with less than 1000 ft.² of space.
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In spite of this, home prices in Manhattan are still expected to continue to increase, as prices are still below the $1.025 million peak seen during the second quarter of 2008. Real estate experts expect prices to reach these levels during the second quarter of this year. Major brokers in Manhattan have seen sales volumes increase by 25% or even more during the first quarter of this year, …read more