New York City showed a 6% increase in the median price of its real estate for 4Q 2007, according to Radar Logic’s statistics, which measures sales of co-ops and condos. Interestingly, the luxury market (upper 10%) was up 30% over 4Q 2006.
The strength of the market is attributed to a weak US dollar, the city’s strong international appeal, residual effect of last year’s Wall Street bonuses, low unemployment and less speculation during the rise up, compared to other markets. Market pull back could come from lower Wall Street bonuses (expected) and the tightening mortgage market caused by the sub-prime gluttons.
Jonathan Miller, Director of Radar Logic Research and the renowned blogger behind the Matrix gave Bloomberg News the rundown.
