Luxury condos and co-ops are booming in Manhattan, New Jersey condos are selling again without enticements and the spring market has kicked in early in some of New York's close in suburbs.
And the high end market continues to...boom...
For the first time, the total prices of Manhattan co-ops selling for $5 million or more passed the $1 billion benchmark, with buyers spending nearly $1.4 billion, up from the $980 million tallied in 2005. There were 11 co-op sales at more than $20 million last year, up from four in 2005, the report said.
The reason is simple. Like Los Angeles - and unlike the booms of the 1980's and the early 1990's - construction of new housing in both Los Angeles and New York in the past few years has still been far below population growth in both cities.
Price increases will likely continue to slow down in Los Angeles compared to New York and average prices will likely even drop, particularly in more outlying areas - but the demand for housing can only increase in both cities.