Property appraisal professionals who are valuating condos, apartments and co-ops in Manhattan cannot yet say if the residential market in New York City has reached its bottom.
Based on co-op and condo sales data for the third quarter this year, sales and prices results have been mixed, making it hard for realtors and appraisers to call a bottom.
For the July to September quarter, the number of condos and co-ops sold increased from total sales in the second quarter, but dropped from total sales in the third quarter of 2008.
The direction of sales prices was not clear, as some sales indicated increases and other sales showed declines. However, sales of new condos and loft apartments continued to drop in the third quarter.
According to one realty firm, the number of co-op and condo units sold in the third quarter increased by more than 45 percent compared to the second quarter, but dropped by 16 percent compared to the third quarter last year.
The average price for a condo and co-op unit was $1.32 million, an increase of 0.8 percent from the April to June quarter but a decrease of 10.6 percent from the third quarter in 2008. Sales prices for co-op units decreased by nearly 6 percent from the April to June quarter while condo prices climbed up by three percent.
Jonathan Miller, a property appraisal professional who also heads his own real estate company, said that the Manhattan residential market has been improving but it has not yet reached its bottom.
Miller added that housing market recovery is being hindered by the rising unemployment rate, lack of available credit and the inventory of new condo units not officially listed in Multiple Listing Services.
On the other hand, some real estate executives like Dorothy Herman are more optimistic and upbeat. Herman said that the housing market has reached its bottom. According to her, her company had the highest level of sales and other transactions in the summer. She believes that the housing market is stabilizing.
Broker Hall Willkie added that buyer confidence is returning because of the slowdown in job losses and the rebound of the stock market.
In the meantime, economist Gregory Heym said that the prices of large apartments have dropped compared to their prices last year. He said that only one apartment sold for over $20 million in the third quarter.
According to Miller, the median sale price for a co-op in the third quarter was $630,000 and the average price was $1 million. The property appraisal professional also reported that the average sales price for a condo unit was $1.58 million in the third quarter.
