Manhattan Home Prices Hit Record High

by Peter Vernon on cities

As of March 2008, apartments being sold in Manhattan have hit new record high even with the nation suffering from the current mortgage crisis. In the reports released by top real estate agencies in the city, Manhattan apartments are in great demand and the housing market is actually being driven by the sales of these luxury homes.

The great demand for these luxury homes and yet limited supply is actually the reason why Manhattan apartments have asking prices between $1.63 million and $1.72 million. Compared to 2007, home prices have actually increased by as much as 47 percent. On the other hand, the average home price increase for the midpoint has also increased by almost 13 percent from last year.

Manhattan apartment prices are believed to be rising because of the hot sales activity in the high-end market. Still, real estate agencies in the city are feeling the negative impact brought about by the national mortgage meltdown. In fact, there is a 34.3 percent decline in home sales during the first three months of this year experienced by Miller Samuel Appraisers, one of the city’s top realtors.

Buyers interested in these Manhattan apartments are now considering their decision to buy these luxury homes carefully. Many experts believe that the city is in the initial stages of a sales meltdown since buyers are being overly-cautious when it comes to making an investment. This is not surprising considering the weakening dollar and unstable economy.

In addition, foreign interest has been observed by many local realtors including buyers and investors from countries such as Italy, Korea and London. Most of these buyers were observed to be particularly interested in several name-brand addresses such as The Plaza.

On the other hand, these are also foreclosure properties that buyers can look into if they are looking to save money and still own amazing properties. If you want to know more about these foreclosed homes, simply visit Bank Foreclosures Sale. You will surely find helpful information and great foreclosure listings.