[If you squint really hard, the graph will get blurry. Repeat until unconscious, or ready to buy.]
It's the start of a new month, and as tradition has it around here, time for readers to weigh in on the state of the sales market in New York City.
Two datapoints to consider. First, Miller-Samuel's just-released Prudential Douglas Elliman second quarter report on the Manhattan market, available for download courtesy of Mr. Jonathan Miller's website. The numbers continue to rise—average sale price to $1.386 million and median sales price to $880,000, both records—but the exuberance isn't totally irrational. Notes the report,
The phenomenon of rising prices and declining sales is a classic sign of a market in transition. The market has entered a period where the sellers no longer have a clear advantage in the typical sales transaction. Buyers were expecting a deep discount on all transactions while sellers remained fairly firm in their pricing. As a result, the number of sales dropped as the buyers who were resistant to rising prices simply chose not to participate, while those who stayed in the market paid record prices on average."The second datapoint comes from Elliman's Luxury Loft brokers Leonard Steinberg and Hervé Senequier, who have this to say (among other things) on the Manhattan luxury market: "One always becomes a little nervous when the VULTURE BUYER emerges (often the signal of bad things ahead) but this time around, there are so many of them, that the sheer volume will dilute their impact on the market, and actually be good for pricing stability." Alrighty. Hit the comments and tell us what you're seeing out there.
· Manhattan Market Overview, Q2 2006 [Miller-Samuel, PDF download]
· Luxury Letter, August 2006 [LuxuryLoft.com]
· Curbed Roundtable: State of the Rental Market [Curbed]
· Curbed Roundtable: June State o' the Market Report [Curbed]