Realty Digest
A Quirky Collection of News and Information
From Malcolm Carter

**** April 14, 2007 ****

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IN THIS ISSUE:

• Items of Interest
• Out and About
• 1st Quarter Market Updates
• New Listings

Items of Interest
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Home and Hearth

COMPANIES WANT TO KNOW HOW YOU'RE FEELING: With competition heating up in the growing home storage and organization business, some retailers are adopting therapy-speak when hawking file cabinets and shoe racks, observes the Wall Street Journal. Much like professional organizers, retailers are training their staff to offer more advice and make emotional connections as they help customers buy shelves or sort sweaters. And some companies are increasingly marketing products from file folders to closets as items that can improve everything from your exercise habits to your relationships. The companies are pitching a whole-life upgrade, not just a tidy bedroom. For example, California Closets' Web site promises to bring "a sense of harmony and order" to customers' lives. The founders of Buttoned Up, a company that sells items such as binders to help people organize their important papers, combines pitches with advice on how to "spark romance" by making regularly scheduled dates with your partner. (Those dates are easier to schedule if you're organized, they point out.) The demand for professional organizers also is booming. The National Association of Professional Organizers has grown to 4,000 members from 2,000 since 2003, says President Barry Izsak. Anxious? Depressed? Yes, such advertising can have that effect.

REVIVE, REPRODUCE, RECYCLE: That variation of the environmental mantra applies to much of what's been on display at the furniture fair in High Point, N.C., reports the Wall Street Journal. A return to traditional styles and an emphasis on eco-friendly materials are among the big themes at the semiannual trade show. Gone is much of the midcentury minimalism and fanciful contemporary pieces that have dominated High Point in recent years. Instead, makers are adapting ornamental standards from centuries past, such as the $7,850 fringed and carved Venetian sofa from P.A.M.A. and the $6,300 Baroque-style chair with silk and leather upholstery from Old Hickory Tannery. Not everything just looks old. Some of it actually is old: a $1,350 table lamp made from 19th-century French wallpaper rollers and a $2,400 dining table from Lee Industries uses wood reclaimed from a defunct pickle factory, for example. The market for furniture using eco-friendly materials and production methods has been steadily growing at High Point in the past few seasons. The shift to safer, traditional styles comes as the industry is bracing for a slowdown. Furniture sales lag behind home sales by six months to a year, according to Laura Champine, an analyst with Morgan, Keegan & Co., a Memphis, Tenn., investment bank. Furniture makers are also trotting out new pitchmen to front their brands - though not at the intense pace and level they did in the '90s and early '00s, when celebrities such as Jaclyn Smith and Kathy Ireland launched collections. And in most cases, they aren't boldfaced names rubber-stamping products but actual designers. One exception: real-estate developer Donald Trump, who has put his name - literally and unsurprisingly - on the bronze-colored plaques attached to the 70 pieces of rosewood and walnut furniture he's introducing with Lexington Home Brands.

The Mortgage Biz

RATES CONTINUE THEIR UPWARD MARCH: The 30-year fixed-rate mortgage (FRM) averaged 6.22 percent for the week, up from last week's 6.17 percent yet down from last year's 6.49 percent, reports Freddie Mac. The 15-year FRM this week was 5.90 percent, up from 5.87 percent. A year ago, it was 6.14 percent. Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.93 percent this week, up slightly from 5.92 percent the week before and lower than the 6.13 percent a year ago. One-year Treasury-indexed ARMs were 5.47 percent this week, up from 5.44 percent. At this time last year, it averaged 5.61 percent. "Interest rates in general ticked up following the release of the March employment data, which showed stronger job growth than what the market expected," said Frank Nothaft, Freddie Mac chief economist. "Mortgage refinancing still remains strong. . . In the fourth quarter of 2006, 84 percent of borrowers who refinanced their prime conventional loans increased their loan balance by more than 5 percent, totaling more than $70 billion in equity extracted. We expect a similar numbers for the first quarter of this year."

WALL STREET IS GETTING STRICTER WITH LENDERS: By extending generous credit to subprime lenders, Wall Street firms financed the borrowing binge that helped fuel the housing boom, according to the Wall Street Journal. Those firms now are turning off the money spigot. They see more borrowers having trouble paying off those mortgages in a slowing economy, which has made investors less willing to pour money into the sector. More than two dozen subprime mortgage lenders have closed shop, and there is concern that the defaults could spread to other types of risky loans and to less-risky mortgages, exacerbating the housing market's slowdown and possibly weighing on the economy. Accredited Home Lenders Holding, a subprime lender, recently was forced to sell $2.7 billion of loans at a big discount to meet lenders' demands for more collateral. Subprime lenders sell many of their loans to Wall Street banks, which package them into securities to be sold to bond investors. The appetite for these bonds grew when interest rates were falling and investors wanted high-yield alternatives. The riskier the customer, the higher the interest rate; so subprime bonds were in demand. Though banks make money lending to subprime companies, packaging the bonds produces hefty fees – an estimated $2.3 billion last year, up from about $500 million five years ago, according to Thomson Financial data. Fees for other services added to the windfall. Shed tears only of the crocodile variety.

DEMAND TAPERS OFF: For the week ended April 6, mortgage loan application volume slipped by 0.4 percent on a seasonally adjusted basis from one week earlier, according to the Mortgage Bankers Association. On an unadjusted basis, the decrease was 0.1 percent compared with the previous week. It rose 10.8 percent compared with the same week one year earlier. Refinancings went down 4 percent from the previous week and, seasonally adjusted, purchases went up 2.7 percent. The refinance share of mortgage activity declined to 42.8 percent of total applications from 44.5 percent the previous week, and the adjustable-rate mortgage (ARM) share fell to 18.7 from 19.2 percent.

LENDERS ARE TIGHTENING STANDARDS ACROSS THE BOARD: "Lenders are going to scrutinize borrowers more carefully" in the next six to nine months, predicts Doug Duncan, the chief economist at the Mortgage Bankers Association, says the New York Times. "The pendulum is probably going to swing too far in the other direction before it settles." That means more New Yorkers are already having to provide more documents to get approvals for all types of mortgages. For example, some brokers who used to get loans approved by lenders without proof of assets from divorces now require the actual decrees. Other mortgage lenders are requiring W-2 forms or pay stubs that they didn't ask for before. In many cases, economists say, borrowers are going to be treated like subprime and Alt-A borrowers for what would seem to be fairly common mistakes such as not paying a few bills on time or carrying a lot of debt. "One of the myths is that subprime is a province of the poor," Duncan added. "Subprime is a province of people who don't manage credit well," regardless of their incomes.

SECOND MORTGAGES SPELL TROUBLE FOR BORROWERS: Having a second mortgage puts home owners at a greater risk of foreclosure, but that doesn't stop banks from giving them to borrowers, reports Business Week in Realtor magazine. A 2006 study by Standard & Poor's, which analyzed 640,000 mortgages with second liens, found that these borrowers are 43 percent more likely to go into default than those who have similar loans but no second mortgage. First American LoanPerformance, a mortgage data and risk firm, analyzed a sampling of loans banks had granted in the fourth quarter of last year. The firm found that within months of getting an original mortgage, more than 50,000 of 169,000 borrowers had applied for more money or tapped a home equity line of credit, pushing their loan-to-value ratio to 95 percent or greater. Big financial institutions are in the dark about borrowers who have come back to them for another loan, says Max Doubek, director of analytics at First American, because home equity lines of credit and first mortgages are often granted by separate departments that don't communicate with each other. "They might as well be different companies."

JUMBO-LOAN DELINQUENCIES POST 18 PERCENT JUMP: Moody's Investors Service reports that 0.35 percent of jumbo mortgages packaged into securities were delinquent in January, rising 18 percent from the same month in 2006, according to American Banker in Realtor magazine. The 30- to 59-day delinquency rate slipped to 0.55 percent from 0.62 percent in the fourth quarter. Year-over-year, jumbo-loan foreclosure and real-estate-owned rates are "still low in relative terms," avers Moody's analyst Peter McNally.

HEY BROTHER, CAN YOU SPARE A LINE (OF CREDIT): When your credit scores don't qualify you for the home mortgage you want, where do you turn? asks Kenneth R. Harney in the Washington Post. He reports that federal and state authorities fear that some borrowers are turning to a fast-growing business on the Internet: companies that claim to boost credit scores by transplanting the credit DNA of people with excellent payment histories into the credit files of people with sub-par histories, ostensibly without breaking any law. The companies claim to raise FICO credit scores by 50 to 250 points, or more, by adding low-scoring borrowers as "authorized users" onto the credit card accounts of people with FICO scores higher than 700. The positive payment information from such cardholders then flows into the files of the people with sub-par credit. Federal law permits authorized users to be added to credit card accounts. Typically, the users are relatives or friends of the primary cardholder. For example, a parent might add a son or daughter to a Visa card to provide access to credit for the child or for use in emergencies. Federal law does not limit the number or dictate the type of authorized users permitted on any single account. Nor does it prohibit the rental or sale of authorized-user designations. Exploiting that loophole, numerous companies have popped up on the Internet offering to buy and rent out the credit card "trade lines," or accounts, of credit card holders with high limits and perfect payment histories.

UNEMPLOYMENT SEEMS TO DRIVE FORECLOSURES: With 22 percent of California's total mortgages considered "risky," the state leads the nation in terms of lending to borrowers with flawed credit, reports Investor's Business Daily in Realtor magazine. Even so, California's foreclosure rate for the fourth quarter of 2006 came in at just 0.43 percent. On the other hand, Midwestern states such as Indiana, Michigan and Ohio all crossed the 1 percent threshold. Economists attribute the Golden State's resilience to a robust economy that continues to create jobs, allowing residents to remain in their homes, supporting housing prices and permitting home owners to use equity to refinance out of adjustable loan terms and into fixed loans. But Michigan, Illinois, Indiana, Ohio and other Midwestern states have been battered by the one-two punch of declining residential values and the loss of tens of thousands of manufacturing jobs following cutbacks at auto companies. "High foreclosures are historically linked to employment issues and regional and state economic conditions," says a Mortgage Bankers Association spokesperson.

RED TAPE IS FOILING BORROWERS' IN TROUBLE: The sharp rise in delinquencies in recent months is straining mortgage companies' ability to respond quickly to borrowers with such solutions as new repayment plans or modifications to loan agreements, according to the Wall Street Journal. Borrowers often must make many calls before finding someone in a position to help them, by which point their problems may have worsened. The process can be particularly complicated when mortgages have been packaged into securities and sold to investors, thereby limiting the mortgage company's flexibility in working out a solution. And for some borrowers, there may not be a good solution, apart from the sale of their home or foreclosure. "If you're a borrower trying to deal with [a mortgage company] . . . or even a private attorney, you're likely to run into brick walls," says Iowa Assistant Attorney General Patrick Madigan, whose job includes working on behalf of Iowa homeowners.

AND BANKRUPTCY OFTEN ISN'T THE ANSWER: According to a study released by Credit Suisse Group, more subprime borrowers are turning to bankruptcy court to stave off foreclosure, as softening housing prices make it harder for them to sell their homes to repay debts, says the Wall Street Journal. At the same time, the study shows, the number of borrowers who are actually able to bring current their mortgage payments through bankruptcy is declining, and more filers are ultimately turning their homes over to the lenders. The finding means investors in high-yielding mortgage-backed securities should expect higher losses on the underlying collateral. At least part of the blame, says the report, lies with a bankruptcy law passed in 2005. The law raised the bar for people to qualify for Chapter 7 "fresh start" bankruptcy proceedings. Chapter 7 can enable individual filers to wipe away debts such as credit-card and medical bills so they can continue to make their mortgage payments. With access limited, more subprime borrowers are forced into Chapter 13, where some can't maintain their payment schedules for more than a couple of months.

This Is Getting Old

NEW RETIREMENT COMMUNITIES ARE AROUND THE CORNER: Most continuing-care retirement community - a type of senior housing that offers residents access to independent living, assisted living and skilled nursing care in the same complex of several buildings - have been found in suburban or rural settings, says the New York Times. Their number increased to 2,240 in 2005 from 274 in the early 1980s, according to the American Association of Homes and Services for the Aging. But now, approximately 15 continuing-care communities are planned or under construction in city neighborhoods, said Kathryn L. Brod, a former director of continuing care for the association and now a senior vice president for Zeigler, a senior living finance company. "There is increased interest in doing C.C.R.C.'s in urban environments," she said. There are only about 30 urban continuing-care retirement communities, many built in the 1980s, according to Joan Annett, who handles senior living financing for the Cain Brothers, an investment banking firm. There are communities in San Francisco and Philadelphia, and one in Boston. The first one in New York City - the 10-story Skyline Commons in Jamaica, Queens - is scheduled to open in 2008. Featuring hotel-style amenities and services, the new metropolitan retirement communities have expensive entry fee and monthly maintenance charges and are a response to an expanding market of affluent and active retirees.

AND AROUND THE WORLD: More people are retiring to Southeast Asia, drawn by word of mouth, incentives from regional governments vying for retirement nest eggs, and affordable living, including housing and relatively inexpensive medical care, says the Wall Street Journal. "Retirees everywhere are taking a very close look at the relative quality and cost of living in deciding where to spend their retirement years," says Su-yen Wong, a managing director for Mercer Human Resource Consulting in Singapore. "Much of the Southeast Asian region scores particularly favorably in the analysis." According to Mercer's 2006 cost-of-living study, Kuala Lumpur ranked 114th out of 144 cities, while Bangkok was 127th and Manila came in at number 141. By comparison, Seoul, Tokyo and Hong Kong ranked as the second, third, and fourth costliest places (behind Moscow), while London and New York were in the top 10. Sydney was the 19th most expensive city, Madrid ranked 53rd and Monterrey in Mexico was 103. While the overall number of overseas retirees in Southeast Asia is still small, it's growing fast. Malaysia, for instance, started issuing retirement visas in 1996. By 1998, there were fewer than 50 holders of such visas. But by 2001, the total had grown to more than 800 and last year topped 8,700, excluding dependents. Malaysia aims to add 3,000 to 3,500 retirement visas annually over the next three years. With six you get eggroll?

THERE'S NOW A THIRD GROUP THAT VALUES FLEX: There used to be two kinds of people in retirement - those who stayed home and those who didn't, observes the Wall Street Journal. Now, there's a third category: nomads who relocate when they retire, then pick up stakes a few years later and move again. And maybe even a few times after that. This wanderlust is the result of a combination of factors: the growing prevalence of decades-long retirements; a higher comfort level with moving among corporate employees who spent their careers being transferred from city to city; and an increasing number of retirees with the financial resources to move around. And one other thing: the ever-present lure of a better place to live. With time, money, health and flexibility, why not keep looking for the perfect retirement spot? There aren't many statistics available yet, but the phenomenon has become so noticeable that academics are already coming up with labels for it. Scott Wright, a gerontologist at the University of Utah in Salt Lake City, refers to the trend of retirees with itchy feet as "Fanby," for Find a New Backyard. Or, how about "Flighty?" (See next headline.)

BIRDS OF FEATHER ARE FLYING TOGETHER: Even as cities are luring people back to downtown neighborhoods with their melting-pot appeal, suburban and exurban "lifestyle communities" are emerging with ever narrower niches, says the Wall Street Journal. Their market: aging baby boomers who increasingly find themselves with the time and money to pursue a singular passion, such as cars, horses or aviation. These specialized communities are popping up across the U.S. Near Ocala, Fla., where John Travolta resides along with his Boeing 707, pilot Terry Jones-Thayer is developing Jumbolair Aviation Estates, the country's largest private airstrip. In Sheperdstown, W.Va., Peter Corum is building The Crofts, an equestrian-estate community with stables, trails and lots up to 11 acres. And in suburban Dallas, Wellstone Communities and Texas aerobics guru Dr. Kenneth Cooper are developing one of the nation's first fitness villages, a 191-acre project where residents will be assigned personal trainers, doctors and dieticians. Adds the New York Times: For some Americans approaching their golden years, choosing the right place to grow old is less about golf and weather than about finding neighbors who share their attitudes and interests. Developments that cater to gays and lesbians have popped up from California to Florida. Retired Jews - or Catholics and other Christians - looking to continue a life of service and fellowship can buy homes and condos in religion-centered communities in Washington and New Jersey. Looking for fellow neopagan anarchist pansexuals? Try Pumpkin Hollow, an all-ages collective in Liberty, Tenn.

The Soothsayers

TRADE GROUP LOWERS ITS FORECASTS: The National Association of Realtors (NAR) says U.S. home sales this year will be lower than it predicted and projects what would be the first annual decline in the median national existing home price since it began keeping records in the late 1960s. According to David Lereah, NAR's chief economist, tighter lending standards will dampen home sales slightly, but by less than a couple of percentage points from initial projections. In his view, sales of previously owned homes likely will total 6.34 million in 2007 and 6.52 million next year in contrast to 6.48 million in 2006. He projects new-home sales to be at 904,000 this year and 935,000 in 2008, below the 1.05 million last year. And Lereah estimates housing starts to be at 1.47 million in 2007 and 1.55 million next year, down from 1.80 million units in 2006. "As home sales moderate, overall home prices will be essentially flat this year," Lereah says. "The good news is that inventories remain well below the levels experienced during the last housing downturn in the early 1990s, and supplies are close to balance in many areas." The national median existing-home price "probably" will slip 0.7 percent to $220,300 in 2007, following a 1 percent rise last year. The median new-home price is expected to increase 0.4 percent to $246,200 this year, after gaining 1.8 percent in 2006. "When you look at housing activity in 2007, especially during the first half of this year, the percentage change in median home price is being distorted as the composition of sales shifts geographically from high-cost markets to moderately priced areas in contrast with the sales distribution a year earlier," Lereah comments. "Within given markets, most areas can expect minor price gains." Overall, modest growth is expected next year, with existing-home prices increasing 1.6 percent and new-home prices rising 2 percent.

FREDDIE MAC SEES HOPE FOR HOUSING RECOVERY: With rates on 30-year fixed-rate mortgages "steady at just above 6 percent and job growth more solidly on track, conditions are ripe for a firming in housing demand." Of course, says the Office of the Chief of Economist in its monthly report, demand is only half of the equation, and housing supply presents several challenges to the recovery. The burgeoning inventories of new homes cloud the supply picture, the report notes. Explaining how official government statistics may understate any recent improvements in new home sales and months' supply, the report adds that a correction for the distortion "bodes well" for a gradual recovery in coming months. "It is far too early, though, to declare that housing is out of the woods," the report then continues. "The turmoil in the subprime mortgage market may curtail housing demand, as some potential buyers find they no longer qualify for financing. . . Rising foreclosures may also dump new supply onto already-depressed local markets, intensifying the downward price pressures in these areas. Furthermore, the jump in homeowner vacancies last year suggests a "hidden supply" that may come on the market during the spring sales season." On the one hand. . . They must teach this stuff.

SUBPRIME TURMOIL COULD HURT HOUSING MARKET: Aftershocks from the subprime market disaster will deal another body blow to the already reeling U.S. housing market, though the economy should weather this latest storm without a recession, according to a new economic forecast, notes Inman News. Says the quarterly Anderson Forecast, produced by the Anderson School of Management at University of California, Los Angeles: "Put bluntly, the credit crunch in the subprime mortgage market will likely trigger a second leg down in the housing market in terms of output and prices." Edward Leamer, forecast director and a professor of economics and statistics at UCLA, said the severity of the subprime meltdown was a surprise since the last forecast was produced. "There are sad individual stories about people who got into homes they couldn't afford," Leamer added. "I think the real story is not what's happening to the people who own homes - it's what happens to prospective buyers who might be buying a home soon. The energy of the market, a lot of it is in the subprime, low-income homes. You need new money in the market in order to fuel the price appreciation. A lot of the new home buyers have been at the lower end - start-up, entry homes. If you pull that out of the market, where's the fuel that's going to keep the fire going?"

The Big Apple

PRICES ROSE A BIT THIS YEAR FROM 1ST QUARTER 2006: Manhattan's median apartment price rose 1.2 percent in the first quarter from a year earlier, the smallest quarterly gain in five years, appraiser Miller Samuel Inc. and broker Prudential Douglas Elliman Real Estate announced. The median price of all co-ops and condominiums in Manhattan rose to $835,000. The growth was the slowest since the first quarter of 2002, said Jonathan Miller, president of Miller Samuel, the New York borough's largest appraiser. Units with at least four bedrooms surged 11 percent to a median $6.45 million, while studios and apartments with less than four bedrooms fell 1.2 percent to 2.8 percent. Manhattan's prices were the third-highest ever and reflect sales of 3,474 apartments. They were higher in the second and third quarters of 2006, the peak of the city's five-year housing boom. Co-ops in Manhattan make up about two-thirds of the Manhattan market. Their median price rose 1.5 percent to $675,000 for the quarter ending March 31 compared with a year earlier. Miller Samuel reported median condominium prices rose 1.6 percent to $990,000, reflecting in part an infusion of new luxury construction. Overall, the median price of studio and one-bedroom apartments fell 2.3 percent to $390,000 and $635,000, respectively, while the price of two-bedroom units fell 2.8 percent to $1.3 million and three bedrooms declined 1.2 percent to $3.1 million, Miller Samuel said. For more details, see the separate synopsis below.

RENTAL MARKET REMAINS STRONG: Manhattan landlords shouldn't expect to have any trouble renting their units this year, but they may not get the huge rent increases they enjoyed last year, according to Real Deal magazine. In 2006, the Manhattan residential vacancy rate remained below 1 percent, and that number rose incrementally to 1.34 percent in February. But given the normal seasonal fluctuations in the rental market, that could be its peak. For the city as a whole, the vacancy rate is expected to increase 10 basis points, or 0.1 percent, to 2.8 percent, according to Marcus & Millichap's 2007 National Apartment Report. This year, developers will add just 3,200 new rental units citywide - 2,700 in Manhattan, according to Marcus & Millichap.

A LANDLORD'S BARK MAY BE WORSE THAN HIS OR HER BITE: That's because of the city's "Pet Law," which provides that no one who openly keeps a pet for three months can be punished for breaking a no-pets clause in a lease. So notes the New York Times.

INVESTORS ARE GLOMMING ON TO RENTAL PROPERTIES: Real estate investment funds, foreign and institutional investors, and local operators are snapping up rental properties across New York City, according to the Sun. Next month, a joint venture comprising a local investment group and a prominent real estate investment fund is expected to close on the purchase of a portfolio of 4,000 units on the Upper West Side and Harlem. The joint venture is paying about $250,000 a unit, or $1 billion in total, for many of these buildings, which were constructed and financed through the Mitchell-Lama program. And the Sun has learned that a local investor is in contract to purchase 800 apartments and numerous stores in 33 buildings on the Upper East Side. Overall, the market is buzzing. "With land becoming more and more scarce in Manhattan and capital still flowing into the island like waves breaking ashore, the keen demand for existing residential rental property is as great as I remember in my more than two decades in the industry," the director and principal at Eastern Consolidated Properties, Alan Miller, said. "Competition for deals is intense, with bidding wars erupting for almost every available property that comes to market." Investors from around the globe are looking to invest in New York City, as evidenced by the recent sale of the East Harlem residential portfolio owned by Steven Kessner to a group from Britain. The purchaser, Dawnay, Dale Group, bought a portfolio of 48 walk-up and elevator apartment buildings for about $225 million. The portfolio includes 1,141 apartments and 67 retail stores that sold for about 13 times the gross rent roll.

ONE BLOCK IS A STANDOUT: In 2006 East 78th Street between Fifth and Madison avenues, a beautiful townhouse block, was the site of $100 million worth of home sales in three of Manhattan's biggest deals since 2005, says the monthly Real Deal magazine. In September, Mayor Michael Bloomberg purchased 25 East 78th Street for $45 million. The six-story, 18,000-square-foot Stanford White-designed house will serve as the headquarters for his philanthropic foundation. In the same month, 6 East 78th Street sold for $21 million, which was not expensive enough to make the top 25 list. Across the street, at 28 East 78th Street, is another six-story Stanford White-designed mansion, which sold in 2005 for $34 million. Another block that saw a flurry of activity last year is East 70th Street between Park and Lexington avenues. Buildings there also fetched impressive prices, including 118 East 70th Street, which Woody Allen purchased for $22.625 million, and 125 East 70th Street, once the home of art collector and philanthropist Paul Mellon, which traded for $22.5 million. Some of the borough's priciest sales are closing on blocks near Columbus Circle: The $45 million sale of a unit at 15 Central Park West set a record for a condo sale in the city. "We're Central Park-centric as a city, unlike other metro areas, where they are water-centric," said Jonathan Miller, president and CEO of appraisal firm Miller Samuel. Of the top 25 deals from January 2006 through the end of February, as determined by public records and PropertyShark.com, one thing is apparent: New condominium projects are fetching staggering prices and constituting a greater percentage of the list. Additionally, "there's surprisingly little representation Downtown," Miller said. In fact, there are no Downtown properties on the list, mostly likely because pricey new condo units haven't yet closed. The most expensive downtown sale since January 2006 was a $19.47 million purchase at 165 Charles Street, followed by a sale at 13 Bank Street for $14.95 million. Seven of the 25 top sales by price were made on the West Side overlooking the park. The East Side had 18 of the top 25 sales, with many of the homes purchased on tree-lined townhouse blocks close to the park and in rich apartment buildings on Park and Fifth avenues. The outlook for 2007 is promising. "This year will be a continuation of '06, because right now we're seeing a tremendous amount of high-end properties," Miller said.

A NEWLY TRENDY NEIGHBORHOOD IS LANDMARKED: The Meatpacking District has been added to New York state's list of historic places, the New York Post quotes officials as saying. Property owners in the lower Manhattan neighborhood will now be eligible for tax breaks, plus grants for preserving and rehabilitating their 19th- and early 20th-century buildings. A part of the neighborhood was granted landmark status by the city in 2003, sparing many of its buildings from the wrecking ball. The newly created historic district encompasses a somewhat larger area, stretching between Hudson and Washington streets and West 15th and Horatio streets.

SAFETY OF NEW CONDOS IS SCRUTINIZED: Commercial towers have far more safety requirements than residential towers, observes the Real Deal. The old codes and their periodic revisions, the last of which passed in 2004, don't apply equally in the city's tallest buildings. "Why is it that I am protected in my office environment, but my wife and children are not protected?" asked Evan Lipstein, an expert in creating high-rise safety and fire programs. "In a home environment, they are asleep for many hours; it is even more important to be protected in those cases." He and other experts say city rules and the International Building Code, developed by the International Code Council, a safety and prevention organization, diverge here. The international rules make no distinctions between residential and commercial buildings; New York does. One of the biggest reasons is cost, said experts. Some of those differences were addressed with the adoption of Local Law 26, which revised the codes in 2004, and a proposed new Draft Model Code, which is being considered by the city. Recent code changes have addressed a range of building specifications that make vast improvements to residential safety - including requiring sprinkler systems and special evacuation procedures for people with disabilities. A recent city report on the new code notes that its authors, after having evaluated the additional costs, could not agree that the safety improvements were worth the additional money owners would have to pay. Items that survived the analysis for residential high-rises were safety acceptance testing of smoke control systems, fire rating of corridors and better standpipes for delivering water to sprinklers and firefighters. But the rules would also call for the reduction of fire-resistance ratings - the amount of time a floor should retain a fire before it spreading to another floor – from two hours to one when a building utilizes sprinkler systems.

This and That

ARE SOME CEOs OVERCOMPENSATING PERHAPS: Finance professors David Yermack of New York University and Crocker Liu of Arizona State University have found that when the CEO owns a trophy home, chances are higher that his company's stock is underperforming, notes Business Week in Realtor magazine. They pinpointed the addresses of 432 CEOs of S&P 500 companies at the end of 2004, learning that 12 percent of them lived in homes of at least 10,000 square feet or on a minimum of 10 acres. Stock in the companies of those who lived largest lagged behind those of S&P CEOs who lived in smaller homes by an average of 7 percent. Steven Goldman, former CEO of energy infrastructure supplier Power-One, was the worst performer. Stock in his company fell more than 30 percent in 2000, the same year he bought a 12,000 square foot beachfront property in Malibu.

MARKETING COMPANY BANKS ON (SAME) SEX SELLING REAL ESTATE: Targeting the same-sex market is the luxury condo development Esperanza located in Asbury Park, N.J. - a haven for same-sex couples, according to Real Deal magazine. Said Jacqueline Urgo, executive vice president at the Marketing Directors, which is the sales agent for the project: "We followed demographic trends, and same-sex couples is a purchaser profile that we're reaching out to." The 224-unit oceanfront condo with two towers is aggressively getting its message out to prospective same-sex buyers through several avenues (none of them Eighth). In addition to participating in the Gay, Lesbian, Bisexual and Transgender Expo at the Jacob K. Javits Convention Center late last month, the company launched an ad campaign for the Esperanza modeled on a personal ad. Metro Homes is the developer.

HOUSING TRENDS ARE HURTING STATES' REVENUE: State tax revenues around the country are growing far more slowly this year and in some cases falling below projections, a result of the housing market slowdown that has curbed voracious spending on real estate, building materials, furniture and other items, according to the New York Times. Nowhere is the downturn more apparent than in Florida, where tax revenue is projected to drop this year for the first time since the energy crisis of the 1970s. But other states are also seeing their collections slow, especially in the sales and real estate transfer tax categories. Maryland's real estate transfer tax revenue has tumbled by 22 percent this fiscal year, suggesting that fewer homes are being sold, prices have fallen or both. Connecticut's real estate transfer tax revenue, which state budget analysts predicted would fall by 3.6 percent, is down by 13.3 percent so far. Some states have defied the trend, chiefly among them New York, where the housing market has been bolstered by sales in Manhattan. The prices and number of apartments selling in Manhattan rose in the first three months of this year, according to data released last week by several of New York City's largest real estate brokerages.

MORTGAGE LENDERS ARE TRIMMING THEIR RANKS: Real estate firms cut jobs during the first quarter at the same pace as last year, but job losses in the mortgage lending industry nearly doubled for the period, according to a consulting firm that helps workers find new jobs, says Inman News. Announced job cuts in the real estate industry totaled 1,149 during the first quarter, about the same as the 1,152 tracked during the same quarter of 2006 by Challenger, Gray & Christmas Inc., a New York-based outplacement job consulting firm. There were 3,490 announced job cuts in real estate in 2006, Challenger said in a report. Mortgage lenders announced 6,138 job cuts in the first quarter of 2007 compared with 3,497 in the same period last year, the report said. There were 12,874 announced job cuts in mortgage lending last year. Announced job cuts in housing construction totaled 13,958 during the first quarter - more than double the 6,450 positions eliminated in all of 2006. Announced job cuts in all three housing related industries during the first quarter alone totaled 21,245 in contrast to the 22,814 jobs lost in all of 2006, the report said.

BE CAREFUL WHAT YOU WISH FOR: When Jesus and Michelle Jacobo won ABC television's "Extreme Makeover: Home Edition," it seemed like their troubles would be over, notes the Kansas City Star in Realtor magazine. But winning such a valuable prize gave them a new source of anxiety: the Internal Revenue Service. The Jacobos' property taxes will double and they owe taxes on the value of their increased home equity and furnishings. And they still owe $121,000 on their old mortgage. Kevin Green, a Kansas City home builder who coordinated the local volunteers who worked on the project, has raised $50,000 to pay the Jacobos' bills, but he is still $71,000 short of enough to bring the family current with the IRS and their mortgage company. Jesus Jacobo, 39, builds cranes and Michelle Jacobo, 38, cares for their four children and five nieces and nephews of whom they have gained custody or have adopted. A grandparent also lives with them. Their old home had 912 square feet while their new one has 5,338.

THEY DON'T USUALLY UNEARTH AN ISSUE LIKE THIS: An investor in a property near Fort Lauderdale, Fla., is suing the previous owners saying that he failed to disclose that there had been Native American bones found beneath the property, says the South Florida Sun-Sentinel in Realtor magazine. In December 2005, Yitzchok Schwartz paid $5.8 million for a 5,616 square-foot house in Highland Beach and subdivided it into 14 efficiencies. In court papers filed with the suit, Schwartz says he wants the sale rescinded and his money back because the bones are preventing him from expeditiously redeveloping the property. The remains require Schwartz to hire experts to determine whether the bones need to be relocated or protected, according to state law - both of which can be costly. Roderick Coleman, an attorney representing previous owner Bibb Latane, says the law exempts sellers from having to disclose any homicide, suicide or death that occurred at a property. The bones, he maintains, are the result of a death on the property. From his point of view, possible homicide is a good thing?

THE TIMES QUESTIONS THE WISDOM OF BUYING OVER RENTING: In an analysis of buying vs. renting in every major metropolitan area, the newspaper of record looked at data on housing costs and different possibilities for the path of home prices in coming years, concluding that the costs that come with buying a home - mortgage payments, property taxes, fees to real estate agents - remain a lot higher than the costs of renting. So buyers in many places are basically betting that home prices will rise smartly in the near future, says the Times. Over the next five years, which is about the average amount of time recent buyers have remained in their homes, prices in the Los Angeles area would have to rise more than 5 percent a year for a typical buyer there to do better than a renter. The same is true in Phoenix, Las Vegas, the New York region, Northern California and South Florida, according to the Times. In the Boston and Washington areas, the break-even point is about 4 percent. "House prices have to fall more before housing becomes a clear buy again," says Mark Zandi, chief economist of Moody's Economy.com, which helped conduct the analysis. "These markets aren't as overvalued as they were a year ago or two years ago, but they're still unfriendly." There is obviously no way to know what home prices will do in the next few years. After the last big run-up in house prices, in the 1980s, a long slump followed. In the New York area, prices peaked in early 1989 and then fell 9 percent over the next three years, according to government data. (Adjusted for inflation, the drop was much bigger.) Not until 1998 did prices pass their earlier peak. For a critique of the Times' approach, check out felixsalmon.com/000833.html.

THOSE HOMES ARE MEANT FOR WALKIN': The next hot market nationwide could be homes in walkable neighborhoods designed for the 75 percent of families that don't have any school-age children, according to Christopher B. Leinberger, a Brookings Institution fellow. Realtor magazine quotes him as saying in Builder magazine that up to 40 percent of Americans want to live in urban places where they can walk to restaurants, shop, jobs and entertainment. He predicts that the move to downtown may well lead the housing market out of its slump. "Downtown living is the preferred alternative," he says. Leinberger believes that one of the best aspects of walkable neighborhoods is that locals are virtually income neutral. In other words, well-heeled empty-nesters and cash-strapped first-time home buyers alike are able to choose the same neighborhoods, even if they can't afford the same interior designs, says architect Rick Emsiek, a partner with McLarand, Vasquez, Emsiek & Partners in Irvine, Calif. Other urban living trends: More sales to single women who will choose cities as they become safer; more pressure by cities on builder to mix residential with retail so service workers can live where they work; cities will cater to the childless while families will move to the suburbs; and empty nesters and their grown children will live near each other in townhouses and condominiums.

Boldface

A FORMERLY FAT ROYAL IS LIVING HIGH ON THE HOG: Sarah Ferguson, the royal squeeze of restaurateur Giuseppe Cipriani, will be living closer to her boyfriend, reports the New York Post. Sources are quoted as saying the Duchess of York is buying a large two-bedroom, two-and-a-half-bath pied-a-terre in the Cipriani Club Residences at 55 Wall St., where she already stays while visiting Manhattan. The Slim-Fast poster girl, who reportedly will have a regular gig on the "Today" show, has been a fixture at the Cipriani concert series in the ballroom downstairs from the flat. Decorated in a classic style, the beige-colored apartment is of Naomi Campbell. The ex-wife of Prince Andrew is expected to fork over something close to the $2.95 million asking price. She would be well advised to stay beyond cell phone-throwing distance.

WYATT HOME IS ON THE MARKET: The longtime Bel-Air, Calif., home of the late actress Jane Wyatt has gone on the market for just under $6 million, says the Wall Street Journal. Architect Paul R. Williams, whose celebrity clients included Frank Sinatra and Lucille Ball, designed the six-bedroom home in 1936. The house has three fireplaces, a slate roof, a wine cellar, an office and a wood-paneled media room with a wet bar. An apartment above the four-car garage has its own deck and meditation garden. The roughly 0.67-acre lot, on a promontory overlooking the city, also has a tiered garden with a hedge maze. Wyatt and her husband, the late Edgar Ward, bought the property in the 1960s and raised their children there. Wyatt, who died in October at age 96, is best known for playing Margaret Anderson in the 1950s sitcom "Father Knows Best," for which she won three Emmy Awards. She also starred in the 1937 Frank Capra film "Lost Horizon" and played Spock's human mother in the original "Star Trek" series.

HERE'S A MOVE THAT WAY OUT OF THE PARK: Roger Goodell, the new commissioner of the National Football League, and wife Jane Skinner, a Fox News daytime anchor, who have twin daughters, sold its seven-room co-op at 180 East End Avenue late last month for $2.725 million, according to the Observer. Their deeds show that the Goodells are living in Bronxville - where the commissioner went to high school, starring in three sports, including football. Tentative 2007 tax records value that Bronxville house at $5,158,400.

IT'S ALL IN THE TOWER FOR TV TITAN: Norman Lear is movin' on up to the West Side. Sources told the New York Post that the creator of such classic sitcoms as "All in the Family," "Maude" and "The Jeffersons" is plunking down nearly $10 million for a classic-style condo at 15 Central Park West. The approximately 2,800-square-foot pied-a-terre, with two bedrooms and two and a half baths is in the tower of the two-building complex. For years, Lear had a sprawling 15-room apartment on the East Side at 828 Fifth Ave. The 84-year-old entertainment mogul/political activist and his wife, Lyn, are said to have hired interior designer Thad Hayes, whose clients include the Lauder family. Lear will join notables Sting and Denzel Washington, among others.

HE FINALLY APPROVES A MEAN DEAL ON THIS STREET: Martin Scorsese has finally sold his Upper East Side townhouse, notes the Wall Street Journal. The Academy Award-winning director and his fifth wife, Helen will soon depart their East 62nd Street home, a four-story residence that he bought 20 years ago. Between Second and Third avenues, the "mint-condition" residence was first listed over a year ago. It had a last asking price of $6.7 million. Included in the five-bedroom, six-bathroom mansion is a spacious double parlor and formal dining room with wood-burning fireplaces, a landscaped garden, two kitchens, a wine cellar, nanny's quarters, a large media room, an elevator and state-of-the-art entertainment and security systems. Scorsese bought the home in 1987 for $1.75 million when he was married to his fourth wife, movie producer Barbara De Fina. Sources say the Scorseses have found a new place farther uptown to be closer to their 8-year-old daughter Francesca's private school.

Research

FEWER PENDING HOME SALES ARE RECORDED: A forward-looking index based on pending home sales indicates that bad weather - and possibly the loss of some subprime lending - will soften sales closed in March and April, according to the National Association of Realtors (NAR). The Pending Home Sales Index, based on contracts signed in February, stood at 109.3 - down 8.5 percent from February 2006 when it reached 119.4. It is 0.7 percent higher, however, than a downwardly revised reading of 108.5 in January. In the view of David Lereah, NAR's chief economist, "If it wasn't for the unusually bad weather in February, we'd be seeing a better performance in pending home sales." He adds that there may have been "some fallout" from a decline in subprime lending, suggesting that a slight improvement in the more volatile month-to-month index is "encouraging."

IS YOUR ZIP CODE AMONG THE 10 WEALTHIEST: During the five-year boom in housing prices, the prices in the nation's richest zip codes rose dramatically, according to Business Week in Realtor magazine. For the United States as a whole, the five-year increase in the Standard & Poor's Case-Shiller Home Price Index was 63.7 percent, while the increase was 79.5 percent for those zip codes with a median sales price of $750,000 or more, according to Fiserv Lending Solutions, which supplies data and software to lenders. The 10 U.S. Zip codes with the greatest appreciation in median property values since 2001 (based on prices from the second quarter of 2001 to 2006) were, respectively: Greenwich, Conn. (06831), $2,983,000, 49.3 percent; Newport Beach, Calif. (92661), $2,500,000, 132.2 percent; Paradise Valley, Ariz. (85253), $1,850,000, 100.4 percent; Avalon, N.J. (08202), $1,687,500, 125.7 percent; Cambridge, Mass. (02138), $1,395,500, 22.4 percent; Glen Head, N.Y. (11545), $1,150,000, 67.2 percent; Islamorada, Fla. (33036), $1,150,000; 204.3 percent; Chevy Chase, Md. (20815), $1,043,000, 94.8 percent; Hinsdale, Ill. (60521), $950,000, 48.4 percent; and Bellevue, Wash. (98004), $950,000, 83.9 percent.

THE ATLANTA AREA IS GROWING FASTEST: According to population estimates for all metro areas by the U.S. Census Bureau, the Atlanta metro area gained 890,000 residents from April 1, 2000, to July 1, 2006, the largest numerical gain of the nation's 361 metro areas. The Northeast metro area with the greatest numeric change was New York (seventh overall nationally), while the Midwest metro area with the greatest numeric change over the same period was Chicago (10th overall nationally). New York was the most populous metro area on July 1, 2006, with 18.8 million people, followed by Los Angeles (13 million) and Chicago (9.5 million). Fourteen metro areas had populations of 4 million or more.

Out and About
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That's Entertainment

Enjoying renewed cachet because of the soaring developments around Columbus Circle, Lincoln Square to the north has proved to be a bustling, vibrant part of New York City. The name of both a square and the surrounding neighborhood in Manhattan, Lincoln Square is centered at the intersection of Broadway and Columbus Avenue between W. 65th and W. 66th streets.

In the words of its Business Improvement District (BID), the area combines a thriving commercial and retail presence, world-renowned cultural institutions and entertainment facilities, and a large residential community all in one neighborhood. Anchored by Lincoln Center for the Performing Arts , the magnificent Time Warner Center and the nearly completed 15 Central Park West, this fashionable, cosmopolitan Upper West Side neighborhood features an abundance of fine restaurants, cafes, specialty stores and increasing numbers of large retailers, state of the art health care facilities, educational institutions, and more. Street life bustles with an energetic vitality in this 24/7 community.

Wikipedia notes that the early part of the 1900s, the Upper West Side area south of 67th Street was heavily populated by African-Americans and supposedly gained its nickname then of San Juan Hill in commemoration of African-American soldiers who were a major part of the assault on Cuba's San Juan Hill in the Spanish-American War. But by 1960, the area was a rough neighborhood of tenement housing and was used for exterior shots in the movie musical West Side Story. Urban renewal then swept through with the construction of the Lincoln Center for the Performing Arts and Lincoln Towers apartments during 1962–1968.

In recent years, Lincoln has been rejuvenated, if not renewed again, in a wave of new or newly converted condos. One of particular note occasions the foregoing neighborhood description – a 22nd-floor apartment in a 41-story building that was built in 1998.

The six-and-a-half-room apartment is exceptional by almost any standard. With three bedrooms, three and a half marble baths, top-of-the-line spacious center-island kitchen, this 2,453-sf apartment boasts extraordinary panoramic views east, north and west, including most of Central Park, from all but one or two rooms. Among its other assets are room-controlled heating and air conditioning, abundant closet space, excellent layout and very well proportioned rooms. Of course, there is a washer-dryer, and the white-glove doorman and concierge building of 42 units allows pets. Such luxury does not come cheap: $6.2 million with $2,788 in common charges.

Another apartment a few blocks north does not compare well, even taking into account the obvious difference in scale. A one-bedroom unit in a post-war building, this 750-sf co-op needs a new kitchen, higher ceilings, better views, better hardwood floors and a bigger bedroom. Otherwise, it's just lovely. Priced to match recent sales, this undistinguished unit is asking a lot of buyers at $727,000 with monthly maintenance of $394.

In the heart of the area, two apartments have been combined into a co-op with four bedrooms, three somewhat dated baths, a smallish but renovated windowed kitchen with breakfast, scads of closet space, a 30' x 13' living room, separate dining area and terrace. The apartment, which has a sensible layout that separates the entertainment and sleeping areas, is in a first-class post-war building with the usual range of amenities – among them, a 24-hour garage and even an emergency co-generator. The price is commensurate with the quality: $3.7 million with $2,477 in monthly maintenance.

Elsewhere in Manhattan, following is a small sample of properties listed by various brokers that have been seen since the last Realty Digest:

• A six-level, 25-foot-square townhouse on the Upper East Side. With elevator, three wood-burning fireplaces, well-appointed baths and a handsome newer kitchen, this nicely renovated property also features commercial space on the ground level. However, that space means walking up a flight of stairs to reach the residence, which has three full and two half baths, as well as three or four bedrooms and a roof terrace with hot tub, built-in gas grill and a shower off a solarium. The property is burdened with an unfortunate graceless façade, but the price of $4.499 million, reduced by half a million dollars, represents excellent value for a buyer who does not object to vertical living.
• On the Upper West Side, a strangely laid out pre-war co-op with three bedrooms, two baths, huge eat-in kitchen, formal dining room, a washer/dryer and two endless halls that create an L-shaped unit. Needing a total renovation, this 2,000-sf apartment is way overpriced at $1.85 million with maintenance of $2,287 monthly.
• A pleasant two-bedroom, one-bath Upper East Side apartment that has an improved but modest kitchen with pass-through. The bath has been renovated, the second bedroom separate from the master is small, the closets have been customized, the standard-height ceilings are finished with popcorn, the light is excellent from the 23rd floor, and there is a balcony with terrific views. The price is right for this 1,000-sf corner unit in a well-located full-service building: $815,000 with $1,484 in monthly maintenance.
• * In Chelsea hard by the flower district, a beautifully renovated 2,109-sf loft with loads of southern light, partial-height walls and invitingly up-to-date kitchen. Whoever designed the place, knew what he or she was doing with respect to flow and aesthetics. The place is currently configured with a master suite separated from the rest of the apartment by a floating wall that has a built-in television and deep storage cabinets; a windowed study off a corner of the living room; a bedroom, plenty of closets and a small laundry room. At $1.975 million, this condo provides excellent value, but buyers have been spooked by a parking lot that could be developed across the street.
• * A penthouse on the corner of a noisy but ideally situated intersection in Midtown. Described – correctly for once – as "palatial," this condo once belonged to Earl Blackwell and now has been decorated by Charles Allem, who wisely turned a ballroom with 19.5-foot ceilings into a gracious living room. Among this apartment's numerous assets are an outdoor living room on the expansive terrace; a collection of top-notch refrigerators, freezers, wine coolers and other appliances in the drop-dead center-island kitchen; a gym; 12-inch-wide walnut floors; a Crestron system to control audio/visual components, air conditioning, lighting and window treatments; master suite that includes a huge bath with steam shower and whirlpool; three other bedrooms; and a study up an actually negotiable spiral staircase. There's more, and so would you expect at a price of $24.5 million with monthly common charges of $6,811.
• On a block off Central Park West, a generally well combined and totally renovated apartment with two bedrooms, two marble-tiled but rather cramped baths, exceptional closet space and a kitchen that is at once sleek and awkward. Essentially U-shaped, the kitchen boasts a breakfast area and high-end appliances, but the stove and sink are on two different "arms" of the "U," separated by a wall. Although it's a handsome apartment with mostly well proportioned and spacious rooms, this co-op cannot be quite worth the asking price of $1.55 million with $1,851 in maintenance monthly.
• * A one-room condo on the Upper East Side that is marketed as a "perfect starter apartment" even though it is perfectly dreadful and grossly overpriced. Aside from its nonexistent views from the second floor, this 450-sf studio in a drab pre-war building is saddled with a Pullman kitchen lacking a full-size refrigerator and any great expense in its updating decades ago. Price: $345,000 with $536 monthly.
• On the Upper West Side across the street from the southern end of Riverside Park, an appealingly updated two-bedroom, two-bath pre-war apartment, washer/dryer, plenty of closet space, beamed high ceilings and nice open views. The windowed eat-in kitchen is well designed with cherry cabinetry up to the ceiling, stainless appliances and beveled granite countertops. Given its location in a full-service building, the unit is well priced at $1.395 million with maintenance of $1,605 a month.
• A two-bedroom, two-and-a-half-bath apartment in a towering fancy building that offers pretty good urban views close to Carnegie Hall. But the bedrooms are small, the 67-sf kitchen is tired, and the oddly-shaped living room is unwelcoming. Tenanted until recently, the 1,150-sf condo on the 36th floor has been on the market for six months, with its price starting at $1.425, then being reduced by $100,000, and now up again to its original price by an owner who obviously believes what he reads and doesn't appreciate how little such a unit is worth. The common charge is $1,058 monthly.
  

1st Quarter Market Update
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Overview

The Manhattan residential real estate market entered 2007 with a surge in the number of sales, declining inventory, rising prices and shorter marketing times, reports CEO Jonathan J. Miller of Miller Samuel Inc. in this synopsis. Record bonus income and stabilizing mortgage rates helped foster the significant increase in demand this quarter. The rise in demand has helped reduce inventory, shorten marketing times and reduce listing discounts.

Key Statistics

Number of sales. Up 73.3 percent from same period last year, a record (but some of the increases are because of co-ops added to public record). Buyers are returning to the market.
Listing inventory. Down14.2 percent from the same period last year and remains below levels seen at the end of 2006. The increased demand is helping the market absorb the inventory that is entering the market.
Listing discount. Down to 2.6 percent from the 2.8 percent discount seen this time last year. Sellers are remaining realistic about setting list prices for the moment.
Median sales price. Up1.2 percent to $835,000 versus the same period last year. Prices are generally stable with some price spikes at the upper end.
Average sales price. Down 0.8 percent to $1,290,391 as compared with the same period last year. Market share gains of studios pulled down the overall average sales price.
Forecast. The Manhattan market is in a position for a positive 2007 as compared with the national market:

• Bonus money is at record levels for the second consecutive year, with possibly several years of strong earnings remaining for Wall Street;
• No significant short term investor activity (flippers); market is driven by owner occupants and second home purchasers;
• Weaker dollar makes investment from abroad less expensive;
• The city is well-run, has a surplus with tourism at record levels and low local unemployment levels;
• Commercial office rents are rising rapidly, demonstrating demand for employment, and residential rental market continues to grow.

For the complete report, please click here: I want to know more

New Listings
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Some of Manhattan's Latest Listings

Below are just a few of the newest listings of condominiums and cooperatives put on the market by various brokers.

350 E 62nd St - 2K, NEW YORK, NY, 10021
$589000
Bedroom(s): 1
Bathroom(s): 1
Square Feet: 550 [168 SqMt]
In the listing agent's inimitable words: "Sun splashed breathtaking with soaring 14 FT ceiling gut renovated duplex loft with a master suite over looking this picturesque lofty living room.new bamboo wood cherry floors ,New installed kitchen mahogany cabinets with stainless steel appliances & cielis granite counter tops.The sleeping suite upstairs with a queen size bed,wall to wall new carpet & surrounding glass block walls make this a unique hi end condo unit in one of manhattan prime & best location on the upper east side. This full service condo bldg with 24HR doorman,laundry room,steps from public Trans,rest,bed bath & beyond,& oh yes tons of closet space. LOCATION LOCATION LOCATION. Apartment Features: South exposure, Modern kitchen Building Features: Roof deck, Terrace"
Listing #: 862401

123 W 86th St - 2R, New York, NY, 10024
$590000
Bedroom(s): 0
Bathroom(s): 1
Square Feet: 600 [183 SqMt]
In the listing agent's inimitable words: "Live the dream in this unique, large studio with private terrace and fireplace! Dramatic loft like 13ft. ceilings, hardwood floors and original moldings make this an old world charmer! Large bathroom with entrance to terrace and the South exposure of the tranquil courtyard feels like country living in the city. Amazing light throughout. Rare opportunity to live a part of history."
Listing #: 863517

240 Riverside Blvd - 8P, NEW YORK, NY, 10069
$685000
Bedroom(s): 0
Bathroom(s): 1
Square Feet: 485 [148 SqMt]
In the listing agent's inimitable words: "Perfect pied-a-terre alcove studio in Trumps newest building. Great light facing the courtyard. Features maple herringbone floors, pass-through kitchen and a washer/dryer. The building offeres AC, two pools, a spa, a garage and a storage unit. The area is very quite and serene"
Listing #: 862530

470 W 24th St - 12J, NEW YORK, NY, 10011
$830000
Bedroom(s): 1
Bathroom(s): 1
Square Feet: 755 [230 SqMt]
In the listing agent's inimitable words: "Move right into this beautifully renovated 1 bedroom at London Terrace - Chelsea's most coveted address. Meticulously maintained, the apartment faces South with charming courtyard views. Both the kitchen and bath have been renovated and you have amazing storage with 3 huge walk-in closets. Additional amenities include a pool, roofdeck, doorman, gym, high-speed internet, storage room and parking on premises. (Please note that some services require additional fees)"
Listing #: 863464

309 W 103rd St - 4, NEW YORK, NY, 10025
$899000
Bedroom(s): 2
Bathroom(s): 2
Square Feet: 1100 [335 SqMt]
In the listing agent's inimitable words: "Rarely available classic UWS brownstone floor-thru 1BR/2BA with exposed brick and original parquet flooring throughout. DW, W/D, A/C, Gas F/P. Sunny private 130sf terrace overlooking garden -- perfect for BBQ'ing. Plans have been drawn up and approved by co-op board and landmarks commission for conversion to a 2BR/2BA, and would be part of the sale if desired. Beautiful building in a beautiful neighborhood, perfect for those about to start a family. Pet-friendly."
Listing #: 863459

130 E 18th St - 17H, NEW YORK, NY, 10003
$1050000
Bedroom(s): 1
Bathroom(s): 1
Square Feet: 850 [259 SqMt]
In the listing agent's inimitable words: "Spectacular Open Views of Gramercy, looking up charming Irving Place to Gramercy Park and beyond. This Apartment is on a high floor and features central A/C, Living Room, Dining Area, newly remodeled Kitchen, Bathroom, large Bedroom. Building features Full-Time Doorman, Courtyard Garden, Roof Deck, Laundry Room, Bike Room, and Garage. Convenient to Union Square, transportation, great restaurants, shopping, Trader Joe's and Whole Foods."
Listing #: 863101

231 W 16th St - 1WR, New York, NY, 10011
$1175000
Bedroom(s): 2
Bathroom(s): 2
Square Feet: 950 [290 SqMt]
In the listing agent's inimitable words: "An ideal location combines with beautiful design and impeccable execution in this Chelsea garden duplex. Traditional details and modern finishes are the backdrop for a 2 bedroom, 2 bathroom apartment. On the upper level of the duplex, with nearly 10 foot ceilings, you will find dark stained hardwood floors throughout, a top of the line stainless kitchen with Miele cooktop and stove, Subzero refrigerator, freezer and wine cooler and a large pantry with room for plenty of storage plus a stacking washer and dryer. Behind a sliding glass door, is a sleek bathroom with Zuma soaking tub and top of line fixtures. Pass into the living room that comes complete with surround sound and flat screen TV and through the dining room or bedroom with two cleverly hidden closets, into the private patio area, perfect for barbecuing or stargazing on a summer night. There is also a hookup for an outdoor shower. Through the lifting trap door in the living room, descend the steps into the lower level of Apartment Features: North exposure, West exposure, Garden, Floors - hardwood, Modern kitchen, Renovated bathroom, Walk in closets, Great closet space, Washer/dryer, Dishwasher, Floors - concrete Building Features: Alarm system"
Listing #: 862537

255 W 23rd St - 5GW, NEW YORK, NY, 10011
$1300000
Bedroom(s): 1
Bathroom(s): 1
Square Feet: 800 [244 SqMt]
In the listing agent's inimitable words: "Chelsea's best prewar, art deco, full service building. Oversized 2 bedroom, 1 bath, 20-ft entry gallery, foyer, sunken living room, windowed eat-in kitchen, windowed bathroom, 5 large closets, bright north and south exposures. Meticulous renovation throughout custom fixtures. Chelsea Gardens features a huge landscaped common garden, bike & laundry rooms. Pet friendly.."
Listing #: 863474

1619 Third Ave - 14A, NEW YORK, NY, 10128
$1350000
Bedroom(s): 3
Bathroom(s): 2
Square Feet: 1400 [427 SqMt]
In the listing agent's inimitable words: "Three bedroom, two bathroom condo with windowed dining room (convertible 4th br). Open park, city and partial river views. Additional 12X6 storage room on the 14th floormay be purchased for $25K. Buillding has garage,bike room, 3rd fl laundry room, private garden, andfulltime/concierge/valet. No pets. Apartment Features: East exposure, North exposure, Full city view, Full park view, Partial river view, Floors - parquet, Light - excellent, Windows - new, Modern kitchen, Renovated bathroom, Storage space, Walk in closets, Great closet space, Dishwasher Building Features: Courtyard, Roof deck, Terrace, Water, Gas"
Listing #: 862730

381 Lenox Ave - PH1, NEW YORK, NY, 10027
$1450000
Bedroom(s): 2
Bathroom(s): 2
In the listing agent's inimitable words: "3 Bedroom 2.5 Bath Mdrn Condo with Terrace New Construction. Garage in Building Call for appt.Liv Rm 20X18, Kit. 10X8, Den 14X10, Master 12X16 Br2 12X16 Br3 12x15."
Listing #: 862699

386 Columbus Ave - 7B, NEW YORK, NY, 10024
$1849000
Bedroom(s): 2
Bathroom(s): 2
Square Feet: 1147 [350 SqMt]
In the listing agent's inimitable words: "Rarely available 2 bedroom, 2 full bath Condo duplex in a premier UWS location at 79th and Columbus. Enjoy the luxury of an elevator that opens to your own private landing. Excellent light through new picture windows that capture the western skyline and overlook sunny, tranquil gardens below. The apartment features hardwood floors, solid core doors, a washer/dryer, new central air units throughout and a separate formal dining area with a built-in entertainment bar. The chefs kitchen has granite counters, ample cabinetry and a dishwasher. Completely renovated baths shine with glass shower tiles and Toto & Sonia fixtures-completed February 2007. Master bedroom has a huge walk-in closet and private en suite bath with jacuzzi tub. This quiet and intimate building maintains a full time doorman. There are bike racks and storage lockers and pets are welcome."
Listing #: 862484

49 E 21st St - 8C, NEW YORK, NY, 10010
$1925000
Bedroom(s): 2
Bathroom(s): 2
Square Feet: 1461 [445 SqMt]
In the listing agent's inimitable words: "This stunning prewar CONDO loft features 2 bedrooms (the office / library would make a great 3rd!), 2 spa-style baths, an open kitchen with Italian stone counter-tops, European appliances and a center island with breakfast bar. With the best floor-plan in the building, the oversized windows and 2 exposures allow beautiful light into the grand 40' living space. 11' beamed ceilings, African oak wide-plank wood floors, custom finishes, generous built-in storage spaces, and California-closet upgrades complete the home. Pin-drop quiet & pet friendly, with only 4 units per floor, this 42 unit building is ideally situated between Madison, Gramercy and Union Sq. Parks. With private basement storage, common roof-deck and a full-time door staff."
Listing #: 862304

130 W 30th St - 7B, NEW YORK, NY, 10001
$1950000
Bedroom(s): 3
Bathroom(s): 3
Square Feet: 2150 [655 SqMt]
In the listing agent's inimitable words: "New Listing. Magnificent brand new loft in the Cass Gilbert building. Huge 2 bedroom, 3 bathroom with a formal dining room/Office/Den that can be the 3rd bedroom as well. Great light, views and Wonderful finishes, high ceilings and beautiful hardwood floor. Kitchen features top of the line appliances such as Sub-Zero and Miele. No expense has been spared. Safest block ever, next to the traffic police building (and no sirens!). Fantastic location - near all subway lines. Truly one of the best homes available."
Listing #: 863140

327 Central Park West - 16A, NEW YORK, NY, 10025
$2995000
Bedroom(s): 2
Bathroom(s): 3
In the listing agent's inimitable words: "Come see this high floor Classic 6 with spectacular Central Park & Reservoir views. This prewar home has a gracious layout which includes a large foyer, a side -by -side living room/dining room, generous-sized living room and master suite, that all faces the park. The apartment also has a large maid's room that can easily be used as a 3rd bedroom. This prewar condo home is in very good condition and is an extraordinary opportunity on Central Park West! Come see this high floor Classic 6 with spectacular Central Park & Reservoir views. This prewar home has a gracious layout which includes a large foyer, a side -by -side living room/dining room, generous-sized living room and master suite, that all faces the park. The apartment also has a large maid's room that can easily be used as a 3rd bedroom. This prewar condo home is in very good condition and is an extraordinary opportunity on Central Park West!"
Listing #: 862250

1100 Madison Ave - 8DEF, NEW YORK, NY, 10028
$4950000
Bedroom(s): 5
Bathroom(s): 5.5
In the listing agent's inimitable words: "APT ALSO INCLUDES 9E-DUPLEX WITH FORMAL DR,ARCHIT DETAILS, CURVED WALLS. HUGE MASTER SUITE(24X32)FAM RM/LIB ECLSODED TERR 5 BR AND 5.5 BTHS. GARAGE AND DISCOUNT TO OWNERS"
Listing #: 863543

60 E 55th St - PTHSE1, NEW YORK, NY, 10022
$6130000
Bedroom(s): 3
Bathroom(s): 3
In the listing agent's inimitable words: "Glamerous full floor comdo with 11'4" ceilings, atop prestigious new Kohn Pedersen Fox designed Park Avenue Place. Dramatic skyline views, superb light and extraordinary finishes throughout. Private entry, unique windowed foyer. Beautifully proprtioned corner Living Room with floor to ceiling windows and spectacular views. Stat of the art chefs kitchen with Sub Zero and Miele appliances Oversized corned Master bedroom and two additional bedrooms with marble and granite ensuite bathrooms and generous closet space."
Listing #: 863002

111 W 67th St - 21DJR, NEW YORK, NY, 10023
$11500000
Bedroom(s): 5
Bathroom(s): 5.5
Square Feet: 4214 [1284 SqMt]
In the listing agent's inimitable words: "This is an incredible opportunity to combine 6 apartments into a breathtakingly harmonious home of over 4200 square feet. Bring your imagination and your architect!"
Listing #: 862961

To see photos, more information and scores of other listings by brokers throughout New York City and Long Island, please visit our website at http://www.ServiceYouCanTrust.com, then click on the appropriate area. To view details of a particular property listed above you will need to note the address.

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