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Three Cents Worth: Manhattan Market Gift Exchange

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[This week, real estate appraiser, Curbed graph guru, and podcaster extraordinaire Jonathan Miller dives into the mind of a foreign buyer.]

Its been a while since I looked at foreign exchange rates applied to Manhattan housing prices. I expanded a bit past the Euro and picked a handful of rates (complying with Curbed readers' requirement of 4-or-less data points) to apply to Manhattan median sales price. With the weaker dollar of the past year, there has been a lot of talk and anecdotal discussion about foreign buyers in the market. It's not as if Europe is booming these days, but the Euro is stronger than the dollar and that drives real estate activity here.

Since no one really tracks foreign buyer metric in a reliable way, I thought I'd provide it from an adjusted-price analysis. This chart is presented to show how a foreign buyer might view the currency imbalance (weak dollar) against Manhattan real estate. A weak dollar means housing purchases are cheaper for foreign buyers than domestic purchasers (not cheap, just cheap-er).

It's been one of the factors contributing to the uptick in demand in Manhattan over the past year.
· Manhattan Co-op/Condo Median Sales Price 2000-2010 [Exchange Rate Adjusted - How Foreign Buyers See Market] [Miller Samuel]