Ka-Ching! Manhattan Housing Prices Skyrocket

One of the nation’s priciest housing markets has become much more expensive. A new report from the real estate brokerage Douglas Elliman has found that the average price per square-foot cost for a Manhattan condo was nearly $1,500 during the third quarter, up 11.7 percent from the second quarter and up 17.9 percent from the third quarter of 2014.

Manhattan’s median sales price in the third quarter was $998,000, up 1.8 percent from the second quarter and up 9.9 percent from the same period last year. The average number of days on the market was 73 during the third quarter, down 22.3 percent from the second quarter’s average of 94 and down 20.7 percent from the 92 day average in the third quarter of 2014.

“With rising sales and declining inventory, Manhattan housing prices increased to their highest level since the financial crisis,” said the new report. “The brisk market pace was characterized by shorter marketing times, a record number of sales at or above list price and more cash buyers. While it is not clear how long this pace can be sustained, we anticipate similar conditions during the fall season.”

And what does this mean for mortgage professionals? Well, 51 percent of all sales in the third quarter were cash transactions, up from 43 percent year-over-year. Sixty-one percent of the third quarter Manhattan condo sales were cash transactions, compared to approximately 42 percent of co-op sales.