If you want to purchase a home in Manhattan you can expect to pay a media price of $1.15 million, according to real estate appraisal firm Mill Samuel for Douglas Elliman Real Estate.
Home prices haven’t been this high in the New York borough since Lehman Brothers collapsed.
The companies examination also found that the average sales price and price per square foot also reached new highs. The average cost of a home is $1.95 million, while a single square foot of space in the area will cost you $1,645.
Prices have skyrocketed because of low supply, tightening credit considerations, and stiff competition.
The firm also says current homeowners are unwilling to sell for fear that they won’t qualify for a new mortgage to “trade up” on their home.
In Manhattan homes listed for $2 million or less are in high demand, but inventory levels are tight. That isn’t likely to change anytime soon as new development projects are focused on higher price points in the city.
47.9% of sales that closed in the fourth quarter were at or above asking price. Bidding wars over properties that do become available is simply commonplace in Manhattan.
Even as new developments reach the market, experts warn that demand is likely to outpace supply for many years to come.