New York City Residential Market Report. First Quarter 2007

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1 New York City Residential Market Report First Quarter 2007

2 Luxury Leads the Way Prices for luxury apartments continued to rise sharply in the first quarter, as the average price for four-bedroom and larger apartments achieved just over $7.9 million, 20% higher than the first quarter of The average price for all Manhattan apartments, including co-ops and condos of all sizes, reached $1,218,064 and was 6% higher than the fourth quarter of 2006, but down slightly from a year ago. The marginal decline of the average price of the past year suggests a decrease in the average size of units sold, a fact substantiated by the 2% increase of the average price per square foot during this time to $1,023. The median price, which provides the most stable indicator of the market, reached a record level in the first quarter of At $770,000, this figure was 4% higher than the first quarter of Also of note during the first quarter was a 26% growth in the number of closed sales compared to the previous year. The co-op market remained strong, especially on the high end, as the average price of $7,332,797 for four-bedroom and larger co-ops was 25% higher than a year ago. The average price for all Manhattan co-ops was $1,078,786, down 7% from the same time a year ago, but up 13% from the fourth quarter of The median co-op price of $630,000 declined 7% from the first quarter of The condo market was also led by larger apartments in the first quarter of 2007, as the average price for four-bedroom and larger condos of $8,924,645 was 22% higher than a year ago. Fueled by robust sales in new developments, the overall median price for condo sales reached a new record high of $970,250, 21% higher than the first quarter of The overall average price for all condo sales of $1,386,287 was unchanged from the first quarter of Contrary to what has been reported on the national level, the Manhattan housing market has reflected continued strength over the past few months. A 26% increase in sales from a year ago demonstrates that buyers remain confident in our market, due in part to favorable economic conditions in New York City. The concern over the rapid pace of development in Manhattan seems to have abated, as new buildings are showing solid sales and prices. With interest rates remaining low and inventory dipping from the inflated levels of last year, the outlook for our market remains positive. Transaction data for this market report is provided by ValuExchange, a proprietary database containing the largest known survey of the New York City residential market. This report is based on 2,657 reported Manhattan apartment sales. Gregory J. Heym Chief Economist, Brown Harris Stevens Cover Property: BrownHarrisStevens.com WEB#

3 Manhattan Cooperatives and Condominiums At $770,000, the median price for Manhattan apartments reached a new high in the first quarter. Larger apartments led pricing gains, as the average price for fourbedroom and larger apartments was 20% higher than a year ago. Average and Median Sale Price $1,258,420 $740,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $1,212,453 $755,000 $1,087,982 $733,900 $1,144,063 $760,000 $1,218,064 $770,000 $400,000 $200,000 1Q06 2Q06 3Q06 4Q06 Average Sale Price Median Sale Price Average Sale Price 1st Q 07 $7,906,260 $2,850,769 $1,441,103 $716,740 $412,753 $1,218,064 4th Q 06 $6,260,402 $3,047,126 $1,434,236 $708,230 $410,383 $1,144,063 3rd Q 06 $5,379,113 $2,707,495 $1,354,930 $702,024 $412,147 $1,087,982 2nd Q 06 $5,573,921 $3,018,858 $1,530,959 $699,364 $408,146 $1,212,453 1st Q 06 $6,605,273 $3,142,949 $1,396,168 $678,226 $402,953 $1,258,420 1st Q 07 $2,208 $1,325 $1,081 $940 $845 $1,023 4th Q 06 $1,581 $1,426 $1,114 $958 $921 $1,050 3rd Q 06 $1,587 $1,382 $1,057 $956 $925 $1,028 2nd Q 06 $1,462 $1,302 $1,078 $925 $861 $999 1st Q 06 $1,615 $1,337 $1,022 $904 $905 $1,000 1st Q 07 $863,032 $441,814 $314,928 $221,144 $190,233 $276,296 4th Q 06 $659,867 $485,491 $320,429 $222,679 $192,439 $273,791 3rd Q 06 $587,851 $407,644,381 $220,895 $198,305 $265,997 2nd Q 06 $604,113 $446,539 $323,942 $221,706 $190,315 $274,724 1st Q 06 $678,997 $460,246 $302,584 $216,228 $191,573 $275,053 First Quarter

4 Manhattan Cooperative Apartments The average price for fourbedroom and larger co-ops of $7,332,797 was 25% higher than during the first quarter of Average and Median Sale Price $1,159,130 $677,000 $1,300,000 $1,100,000 $1,257,571 $707,500 $1,003,945 $640,000 $953,120 $599,000 $1,078,786 $630,000,000 $700,000 $500,000,000 $100,000 1Q06 2Q06 3Q06 4Q06 Average Sale Price Median Sale Price Average Sale Price 1st Q 07 $7,332,797 $3,037,988 $1,306,323 $604,824 $367,006 $1,078,786 4th Q 06 $6,178,656 $2,642,118 $1,236,601 $602,090 $362,748 $953,120 3rd Q 06 $4,821,935 $2,845,196 $1,249,900 $615,229 $360,053 $1,003,945 2nd Q 06 $5,875,424 $3,024,527 $1,562,758 $622,165 $361,176 $1,257,571 1st Q 06 $5,885,127 $3,098,147 $1,363,909 $622,519 $353,137 $1,159,130 1st Q 07 $716,460 $430,638 $270,271 $187,333 $168,900 $235,927 4th Q 06 $566,987 $384,593 $258,976 $186,275 $166,569 $221,145 3rd Q 06 $500,984 $388,644 $262,169 $188,373 $170,580 $227,810 2nd Q 06 $571,432 $409,255 $309,073 $196,954 $170,346 $257,862 1st Q 06 $534,765 $421,589 $282,292 $196,890 $168,055 $245,903 4 First Quarter 2007

5 Manhattan Condominium Apartments Reaching $970,250, the median price for condo sales during the first quarter set a new record and was 21% higher than a year ago. Average and Median Sale Price $1,384,932 $800,000 $1,500,000 $1,300,000 $1,100,000 $1,171,972 $810,000 $1,196,931 $855,000 $1,320,356 $950,000 $1,386,287 $970,250,000 $700,000 $500,000,000 1Q06 2Q06 3Q06 4Q06 Average Sale Price Median Sale Price Average Sale Price 1st Q 07 $8,924,645 $2,715,877 $1,570,812 $854,876 $491,751 $1,386,287 4th Q 06 $5,814,566 $3,204,207 $1,594,890 $837,887 $499,609 $1,320,356 3rd Q 06 $6,132,941 $2,586,133 $1,483,365 $797,779 $504,055 $1,196,931 2nd Q 06 $5,287,053 $3,025,415 $1,508,314 $766,910 $457,276 $1,171,972 1st Q 06 $7,300,586 $3,316,851 $1,429,517 $753,936 $472,466 $1,384,932 1st Q 07 $2,360 $1,360 $1,159 $1,040 $908 $1,118 4th Q 06 $1,657 $1,487 $1,186 $1,059 $1,017 $1,141 3rd Q 06 $1,661 $1,426 $1,131 $1,045 $997 $1,108 2nd Q 06 $1,614 $1,397 $1,136 $987 $918 $1,061 1st Q 06 $1,740 $1,509 $1,066 $993 $998 $1,088 First Quarter

6 East Side Generally 59th to 96th Street, Fifth Avenue to the East River Although they accounted for fewer sales than a year ago, prices rose sharply for four-bedroom and larger apartments on the East Side. Their average price of $8,875,796 was 26% higher than a year ago. Percent of Sales Average Price 4+Bedroom 3-Bedroom 2-Bedroom 1-Bedroom Studio 1st Q 06 7% 13% 32% 37% 11% 1st Q 07 4% 14% 29% 38% 14% 1st Q 06 $7,043,778 $3,702,545 $1,639,523 $668,624 $367,730 1st Q 07 $8,875,796 $3,301,714 $1,481,823 $637,709 $383,297 % Change 26% -11% -10% -5% 4% Cooperative Condominium $363,055 $362,642 $215,059 $221,934 $1,196 $1,139 $350,000 $1,200,000 $1,050 $250,000 $200,000 $750 $150,000 $600 $100,000 $450 $50,000 $0 $150 Prewar Postwar 1Q06 1Q06 6 First Quarter 2007

7 West Side Generally 59th to 110th Street, Hudson River to West of Fifth Avenue Condo prices remained strong on the West Side, as their average price per square foot of $1,216 was 9% higher than 2006 s first quarter. Percent of Sales Average Price 3+Bedroom 2-Bedroom 1-Bedroom Studio 1st Q 06 16% 33% 40% 11% 1st Q 07 14% 33% 38% 14% 1st Q 06 $3,553,204 $1,344,020 $688,718 $414,815 1st Q 07 $3,608,506 $1,349,780 $672,838 $389,936 % Change 2% 0% -2% -6% Cooperative Condominium $268,825 $238,268 $202,214 $214,234 $1,111 $1,216 $350,000 $1,200,000 $1,050 $250,000 $200,000 $750 $150,000 $600 $100,000 $450 $50,000 $0 $150 Prewar Postwar 1Q06 1Q06 First Quarter

8 Midtown Prices were generally lower in the Midtown East market over the past year, led by a 10% decline in the average price per square foot for condos. Midtown East Generally 34th to 58th Street, Fifth Avenue to the East River Cooperative $250,000 $200,000 $150,000 Condominium $209,129 $173,126 $195,333 $195,398 $1,127 $1,016 $1,300 $1,100 $100,000 $700 $50,000 $500 $0 Prewar Postwar 1Q06 1Q06 At $1,124, the average price per square foot for condos in the Midtown West market was 15% higher than a year ago. Midtown West Generally 34th to 58th Street, Hudson River to West of Fifth Avenue Cooperative $250,000 $200,000 Condominium $183,751 $155,686 $176,992 $175,511 $979 $1,124 $1,300 $1,100 $150,000 $100,000 $700 $50,000 $500 $0 Prewar Postwar 1Q06 1Q06 8 First Quarter 2007

9 Downtown South of 34th Street All size categories in the Downtown market posted higher average prices than the first quarter of 2006, led by a 13% gain for one-bedrooms. Percent of Sales Average Price 3+Bedroom 2-Bedroom 1-Bedroom Studio 1st Q 06 9% 24% 52% 15% 1st Q 07 6% 28% 45% 21% 1st Q 06 $2,389,484 $1,260,725 $676,649 $431,774 1st Q 07 $2,679,930 $1,378,591 $762,477 $463,387 % Change 12% 9% 13% 7% Cooperative Condominium $233,998 $233,724 $210,808 $202,448 $1,017 $1,021 $350,000 $1,300,000 $1,050 $250,000 $200,000 $750 $150,000 $600 $100,000 $450 $50,000 $0 $150 Prewar Postwar 1Q06 1Q06 First Quarter

10 Manhattan Lofts Manhattan Townhouses At $1,129, the average price per square foot for lofts sold last quarter was up 5% from a year ago. $1,100 $1,077 $1,005 $1,048 $1,073 $1,129 $1,388 $1,266 $1,457 $1,511 $1,407 $1,500 $1,300 Townhouse prices were up slightly from 2006 s first quarter, reaching an average of $1,407 per square foot. $700 $500 $100 $1,100 $700 $500 1Q06 2Q06 3Q06 4Q06 1Q06 2Q06 3Q06 4Q06 Brooklyn Heights and Park Slope Apartment prices were higher than a year ago for all sizes of apartments in Brooklyn Heights and Park Slope, led by a 7% gain for studios. The average townhouse price of $568 per square foot in these areas was down 9% from a year ago. Cooperatives and Condominiums Average Price Townhouses 2-Bedroom 1-Bedroom Studio All 1st Q 06 $689,168 $472,200 $306,545 $599,517 1st Q 07 $722,828 $474,786 $327,667 $608,944 % Change 5% 1% 7% 2% $623 $572 $709 $634 $568 $800 $700 $600 $500 $400 1Q06 2Q06 3Q06 4Q06 10 First Quarter 2007

11 Gregory J. Heym is the Chief Economist for Brown Harris Stevens and serves on the City s Economic Advisory Panel. He has covered the residential real estate market for the past twelve years, and was the author of the Real Estate Board of New York s cooperative and condominium sales reports prior to joining Brown Harris Stevens. Mr. Heym s academic background includes a B.S. in Economics from Saint John s University and an M.B.A. from Hofstra University by Brown Harris Stevens. All Rights Reserved. This information may not be copied, used or distributed without Brown Harris Stevens consent. While information is believed true, no guaranty is made of accuracy.

12 EAST SIDE 655 Madison Avenue Hall F. Willkie, President Ruth McCoy Executive Vice President, Managing Director of Sales UPPER EAST SIDE 1121 Madison Avenue Peter Marra Executive Vice President, Managing Director of Sales WEST SIDE 1926 Broadway Jim Gricar Executive Vice President, Managing Director of Sales DOWNTOWN 2 Fifth Avenue 43 North Moore at Hudson Street Kevin Kovesci Executive Vice President, Managing Director of Sales BROOKLYN HEIGHTS 129 Montague Street Christopher Thomas Executive Vice President, Managing Director of Sales PARK SLOPE 100 Seventh Avenue MaryAnn Albano Executive Vice President, Managing Director of Sales Everywhere you are. NEW YORK CITY PALM BEACH THE HAMPTONS NORTH FORK