One part of Manhattan's housing market is going bananas

Condo and co-op prices in Northern Manhattan jumped 9.5% year-over-year in the fourth quarter to a median price of $575,000, according to a report released by Douglas Elliman and Miller Samuel on Friday.

The number of sales surged 39.2% YoY to 277. Northern Manhattan consists of Harlem, East Harlem, Washington Heights, Fort George, and Inwood neighbourhoods.

Friday’s report highlights the dramatic shift that is taking place in Manhattan’s real estate market. In a report released on January 4, Douglas Elliman wrote they were seeing a “continued easing of conditions, capping off a year without the frenzy seen in the prior several.” Manhattan has become burdened with a glut of inventory that has made its way onto the market, allowing buyers to negotiate lower prices.

Sales at the upper-end of Manhattan’s real estate market have been under the microscope as of late. A report published at the end of 2016 showed that luxury contract signings fell 25% YoY for apartments worth $4 million and up. “The decline reflects classic price resistance,” said the report.

Prices in the Hamptons, a favourite vacation spot for Wall Street, are also collapsing. Brokerage reports released by Brown Harris Stevens and the Corcoran Group showed prices were down 23.1% and 11%, respectively.

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