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A January report indicates that Manhattan sales have reached the second all-time high in the past 25 years.
For the past four years, the real estate market in Manhattan has shown stable activity, with sales reaching just over 10,000. A report from Douglas Elliman Real Estate, using data from Miller Samuel Inc, indicates that in 2013 these numbers jumped even higher, by 21.2 percent to 12,735 from the previous year.
Prior to the report, numbers indicated that the highest number of sales was 13,430, in 2007.
Jonathan Miller, chief executive of Miller Samuel, told WPC News that the increase was due to pent-up demand from the previous several years, which finally came to a head as people who were uncertain about entering the market to trade up or become first time buyers took the plunge.
As people began to forge through the worries brought on by the economy, inventory began to drop to record lows as well.
The report showed that while there were 3,297 sales in the closing months of 2013, the supply of units dropped to units was down to 4,164, the lowest levels in the last 14 years.
The 12.3 percent inventory drop combined with rising sales caused the monthly absorption rate to fall to 3.9 months, which is the fastest pace the market has seen in the past 14 years.
Even with the near-record sales volume and low inventory, the report indicates that sales prices showed modest gains even as credit remains tight. In 2013, median sales priced increased 2.4 percent to $855,000, while the average price per square foot increased 4.6 percent to $1,136 year-over-year.
Similar trends were seen for Manhattan townhomes. There was a 17.7 percent increase to 326 from a year earlier, while market inventory fell 16.5 percent to 343 units, making it the fastest moving market in 17 years.
Median sales prices also indicated slight gains as well, with an increase of 2.6 percent to $3,591,250 in 2013.
The median sales price for condos went up to $1.32 million, up 14.3 percent from last year.
Co-ops comprised the bulk of sales for the year, with a median sales price of $680,000, up 4.6 percent since last year.
Although 2013 is most likely an anomaly, it bodes good news for 2014 as well as more shed their fear and enter the market.