NYC Residential Fourth Quarter 2010

Market Report provided by The Real Estate Board of New York

The New York City residential sales market in the fourth quarter of 2010 saw a continuing and sustainable rise in the average sales price and a sharp decline in the number of transactions. Average sales price increases over the last year have been driven by record low mortgage rates, the federal home buyer tax credit, a significant slowdown in the supply of new housing, and modest job growth in New York. The decline in transactions was the result of the end of the homebuyer tax credit along with the extension of the closing deadline that inflated sales in the third quarter of 2010, a drop-off in the pent-up demand that produced an uncharacteristic surge in transactions in the fourth quarter of 2009, and a return to typical seasonal sales activity in the market.