Manhattan Residential Prices Up in Q1, Driven by 42% Increase in $10 Million-plus Transactions

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According to real estate firm Brown Harris Stevens' first quarter Manhattan residential market report released this week, the average Manhattan apartment sale price of $1,483,591 was up 9% from same period in 2011. A leading factor in the higher average price was a steep incline of 42% in the number of sales over $10 million when compared to the same period last year.

The average price for cooperatives sold during the first quarter of 2011 was up 10% from a year ago, at $1,181,715. The average condominium price was $1,889,560 the highest average in three years, up 8% from a year ago with all size categories seeing an increase in price. There were 1,800 first quarter closings reported at the time of this report, 2% more than a year ago.

"The record-setting sale at 15 Central Park West, in which our firm was delighted to represent both the buyer and the seller, had a significant impact on this quarter's report but it's important to note that there were 16 additional transactions over $10 million that closed this quarter. Another sign of the improving residential market is that the number of sales was up 2% from the first quarter of 2011," said Hall. F. Willkie, president of Brown Harris Stevens Residential Sales. "New York City's recovery continues to best most predictions and this combined with a stable inventory of available apartments makes me optimistic about the coming months."

Manhattan Residential Sales Report Highlights for 1Q Include:

• New developments accounted for 41% of all condo closings, up from 35% in the first quarter of 2011.

• On the East Side, larger apartments did better with 2 bedrooms seeing an increase in average price of 3% and three bedroom and larger apartments seeing a 9% increase over the same period last year.

• On the West Side three bedroom and larger apartments saw a 52% increase over the first quarter of 2011 due in large part to the $88 million sale at 15 Central Park West. If this transaction is disregarded the average price for three-bedroom and larger apartments would be $4,384,461, 22% higher than a year ago. The average condo price per square foot was $1,731 but if the same deal is not factored in it would be $1,598, 18% higher than the first quarter of 2011.

• In the Downtown market, the average condo price per square foot rose 4% over the past year to $1,241. Smaller apartments showed the biggest gains in average sales price with studios rising 12% over the first quarter of 2011 and one bedrooms up 11%.