Slowly rising prices and sales volumes in the New York City residential sales market continued in the third quarter of 2012, continuing a trend that we have seen since the official end of the recession. Average prices increased by 1 percent year on year citywide and sales increased 6 percent year on year. The lack of forceful economic winds in either direction seemed to act as a stabilizing factor for the market. The only major development systematically important to the market was the Federal Reserve’s announcement of a round of mortgage backed security purchases aimed to keep mortgage rates at near bottom levels. Given the sustained level of demand and the decline in inventory both in Manhattan and the boroughs, development of new units should pick up in 2013.
Sales of all homes in New York City were up 6 percent from the third quarter of last year. The average sales price of a New York City home in the third quarter of 2012 was $786,000, up 1 percent from the third quarter of 2011. The increase can be attributed to increased sales in the boroughs and as well as sales in Manhattan. Although no individual sales breached the fifty million dollar level, there were still twenty six sales over ten million dollars with the highest being the forty million dollar sale of 973 Fifth Avenue.
Total residential consideration for New York City this quarter was $8,620,640,237, 7.2 percent greater than the third quarter of 2011. Total consideration in Manhattan this quarter was $5,098,648,083, 5.1 percent more than the third quarter of last year.
Brooklyn’s consideration was $1,710,711,754, 10.5 percent greater than the third quarter of last year. Total consideration in Queens was $1,276,473,921, which is 3.5 percent greater than a year ago.