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Manhattan Real Estate Jumps 42%

Manhattan real estate is up, up, and away, according to a recent report. Manhattan apartments and condos are up a whopping 41%.

According to the report, the average sale price of a New York City home jumped 28% to $853,000 in the first quarter of 2008, compared with $669,000 in the first quarter a year ago. The increase was primarily due to surging sales in Manhattan apartments (condominiums and cooperatives), where the average price climbed 41% to a record $1.6 million, compared with $1.1 million in the first quarter of 2007.

“The significant increase in home prices in Manhattan clearly boosted the citywide average,” REBNY President Steven Spinola said. “Further, the report shows that Manhattan’s luxury market for high-end properties continues to remain untouched by the slowing national economy.”

Millionaires only need apply to live on the Upper East Side, because an apartment there will set you back, on average, $2.1 million.

There is one major contradiction included in this news; although home prices are up, sales volume is down. That leads one to wonder just how long the current trend will continue.