Median home prices in Manhattan, New York, reached $855,000 at the end of the final quarter of 2013, according to a report by Douglas Elliman.
The real estate market in Manhattan has experienced sustainable growth for over a year now and prices are climbing up from the low median value of $800,000 in 2009.
However, prices are still far lower than the 2008 peak of nearly $1 million.
Increased market gains, a recovering economy and more foreign investment has helped fuel the increase in house prices and sales, with total apartment sales increasing by 26.8 percent to 3,297.
The average price for new luxury properties in Manhattan increased by 72 percent up to $7.85 million, which represents a huge increase from $4.564 million in 2012.
$100 million homes in Manhattan – a market reality
Pamela Liebman, the chief executive of the Corcoran Group, said the following:
“The smart developers realized there was an underserved need for large apartments in New York City and this quarter in particular saw a lot of large apartments closing, which helped to drive up the price.”
Diane Ramirez, CEO of Halstead Property, said:
“Now a lot of New Yorkers who live and grew up in co-ops are looking at new luxury condos,”
“In the 1980s the luxury market was about studios, and one- and two-bedrooms. Today the new developments going up have two to five bedrooms and more.”