SOURCE: ResidentialNYC.com, Real Estate Board of New York (REBNY)

ResidentialNYC.com, Real Estate Board of New York (REBNY)

January 13, 2011 11:21 ET

REBNY Report: Mixed Reviews for NYC Residential Sales Market in 4th Quarter -- Average Sales Prices Increased, Transactions Declined

Average NYC Home Prices up 10% Over Last Year; Manhattan Prices up 13%; Survey of Brokers Reports More Closings in the Months Ahead

NEW YORK, NY--(Marketwire - January 13, 2011) - The average price of a home in New York City increased 10 percent in the fourth quarter of 2010 compared to the same time last year and rose two percent compared to the previous quarter, while the number of transactions and the total dollar value of all property sales declined, according to a new report. 

Average Manhattan home sales prices (for cooperatives, condominiums, and one-to three-family dwellings) showed the biggest increase, and were up 13 percent to $1,450,000 compared to the same time last year. The report, a comprehensive look at New York City housing prices for all five boroughs, is issued quarterly by ResidentialNYC.com, the public real estate listings Web site of the Real Estate Board of New York (REBNY).

The citywide increases in average sales prices have been driven by record low mortgage rates and modest job growth in New York, according to the report.

"The market is getting back to its regular cyclical patterns in the post-recession environment," said Steven Spinola, REBNY President. "Despite the slower volume of transactions this quarter, the average sales price increases show that the market is improving, which is a positive sign for the city's economy."

Despite rising New York City home sales prices, transactions declined by 24 percent in the fourth quarter of 2010 to 8,800 from 11,600 in the fourth quarter of 2009. As a result of fewer transactions, the total consideration for residential property dropped 23 percent to $6.5 billion from $7.7 billion in the same quarter last year.

The decline in transactions in the fourth quarter of 2010 was due in part to the September 30, 2010 closing deadline for the homebuyer tax credit, a drop-off in pent-up demand, and a return to typical fourth quarter seasonal sales activity in the market.

According to REBNY's quarterly brokers survey, seven percent more brokers reported having executed contracts of sale this quarter compared to last quarter, and two percent more report having closings scheduled within the next three months. In addition, four percent more brokers reported closing sales at or above asking prices this quarter compared to fourth quarter of 2009. 

"Reviewing the data in our residential sales report and brokers survey suggest that there are reasons to be encouraged by the activity in the market," said Michael Slattery, REBNY senior vice president.

The residential sales report also found that the percentage increase in Brooklyn condominium average sales prices eclipsed the percentage increase in Manhattan, jumping seven percent to $538,000 compared to last year, while Manhattan condominium average sales prices increased four percent to $1,682,000. Citywide, condominium average sales prices increased just one percent to $1,082,000.

Cooperative average sales prices also increased citywide by 26 percent to $713,000. The solid increase was due to Manhattan's larger share of the total sales, along with a higher average sales price in Manhattan.

For the full reports visit www.residentialnyc.com or www.rebny.com.

About ResidentialNYC.com
ResidentialNYC.com is the first comprehensive web portal enabling homebuyers to link to thousands of exclusive home listings in New York City from thousands of REBNY residential member brokers. Since launching ResidentialNYC.com has logged more than 56 million hits. 

The site, which is updated every three hours, provides access to condos, co-ops, townhouses and homes both for sale and for rent as well as lists Open Houses. ResidentialNYC.com also contains a wealth of information about New York City's residential real estate market, neighborhoods, school districts and more, making it the only true one-stop destination for New York City homebuyers on the Web.

About The Real Estate Board of New York 
The Real Estate Board of New York is the city's leading real estate trade association with more than 12,000 members. REBNY represents major commercial and residential property owners and builders, brokers and managers, banks, financial service companies, utilities, attorneys, architects, contractors and other individuals and institutions professionally interested in the city's real estate. REBNY is involved in crucial municipal matters including tax policy, city planning and zoning, rental conditions, land use policy, building codes and legislation. In addition, REBNY publishes reports providing indicators of market prices for both the residential and commercial sectors. Please visit us online at www.REBNY.com.

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