While the national housing market continues to struggle with rising inventory and weakening home values, the market for apartments in Manhattan is gaining strength. According to data recently released by several of New York City’s largest real estate brokerages, the prices and quantity of apartments selling increased in the first three months of this year.

The volume in Manhattan apartment sales has increased by 12 percent over last year’s fourth quarter according to two of NYC’s largest real estate brokerages. The average sale price for apartments in Manhattan, including co-ops and condo’s rose by 6 percent in the first three months from last year’s fourth quarter according to the two brokerages. Other brokerages state an increase of 5.4 percent and 12 percent.

At the beginning of the year the market got off to a roaring start when brokers and real estate analyst’s reported that potential buyers were crowding open houses and engaging in bidding wars. “With the increase in activity, the second quarter is likely to see more appreciation,” said the president of a NYC appraisal firm.

Though all of the brokerages reported increases in sales, the numbers differed greatly from one brokerage to another. Several companies reported a 10 to 12 percent increase, while another reported a 42 percent increase though the president of the company believes that the high number might be partly due to the number of increased co-op sales.

Researchers report that bonuses from Wall Street, one of the most profitable years yet, resulted in buyers paying roughly 20 percent more for apartments with four bedrooms or more in Manhattan. Buyers were also willing to pay higher prices for apartments in Brooklyn as well. Brooklyn apartment prices saw an overall increase of 22 percent in the first quarter of this year.

Information from an article in the NY Times. To read the full article, please go here.

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