Balance in Marketplace With Low Inventory, Continued Tight Credit, Record Low Mortgage Rates & Rising Entry-Level Activity Also Noted
Prudential Douglas Elliman today released its Elliman Report Manhattan Sales 3Q 2012 market report which showed strong summer activity, overall stability with a balanced marketplace, and record-breaking sales in the very high end.
“The momentum of Manhattan’s active spring market carried over to the summer months with more signed contracts than the previous summer,” said Dottie Herman, President and CEO of Prudential Douglas Elliman. “Inventory fell to a seven-and-a-half year low, while tight credit continued, keeping balance in the market.”
Consistent with the past three years, overall prices and sales remained stable, while record low mortgage rates and rising rental prices resulted in more entry-market sales activity. The luxury market was exceedingly strong and “record trophy property sales continued to amaze all,” Herman stated.
“Housing prices continued to remain stable,” said Jonathan Miller, President/CEO of Miller Samuel, who wrote the report. “The year-over-year dip in price indicators reflected the rise in one-bedroom sales, pulling the overall numbers down, while low mortgage rates drove the entry-market.”
2012 had more momentum going through summer, as pending sales jumped 4.9% ahead of the summer of 2011. Closed sales slipped 5% from last year.
“Inventory fell 24.3% from last year to lowest level in 7.5 years,” added Miller, “with low equity keeping many sellers from listing, as those sellers cannot become buyers because of tight credit, election year paralysis and concern about the direction of the national economy.”
Another continuing trend is that condominium pricing outpaced co-ops due to the high activity of foreign buyers. Luxury market prices slipped, as inventory edged higher, and there was a jump in three-bedroom sales.
“Manhattan remains one of the best housing markets in the US, with employment rising, tight inventory and strong international demand, despite tight national credit conditions, added Herman. .” We expect these trends to continue through the end of the year.”
About Prudential Douglas Elliman Real Estate
Prudential Douglas Elliman Real Estate is New York’s largest residential brokerage, with over 60 offices in New York City, Long Island, the Hamptons and Westchester/Putnam, more than 3,800 real estate agents and a network of national and international affiliates. They are exclusive strategic partners with London-based Knight Frank LLP for residential business in all of their New York markets. Prudential Douglas Elliman ranked in the top four of all real estate companies in the nation in 2007, 2008, 2009, and 2010. The company also controls a portfolio of real estate services, including Manhattan’s largest residential property manager, Douglas Elliman Property Management, as well as PDE Title and DE Capital Mortgage. For more information on Prudential Douglas Elliman as well as expert commentary on emerging trends in the real estate industry, visit the Prudential Douglas Elliman site at http://www.elliman.com.
About Miller Samuel
Miller Samuel is an appraisal and consulting services firm covering the New York City metropolitan area. Miller Samuel provided property valuations of more than $5,000,000,000 in the past year. The company’s clients include domestic and international financial institutions, law firms, consulting firms, developers, employee relocation companies, co-op and condo boards, managing agents, individuals and government agencies. The firm has authored this report series since 1994. For more information visit https://millersamuel.com.
