Manhattan housing market shows signs of relief

With historically low interest rates being offered to borrowers and rock-bottom home prices available due to a surplus of distressed properties in the market, the climate seems favorable for consumers looking to purchase a home. Freddie Mac recently reported that the average rate on a 30-year fixed mortgage is down to 4.01 percent, which could save a homeowner more than $60,000 in interest payments on a $200,000 loan across the life of the loan.

According to MarketWatch, another reason the current housing market is ideal for potential homebuyers is that rents are very high in the United States, making many small home purchases more affordable than renting a two-bedroom apartment. Also, many experts believe that the current trends in home prices indicate that the market will be hitting its bottom very soon, meaning home prices will start to rise and buyers will have missed their chance on real savings.

One market that has shown strength over the last three months is the Manhattan-area housing market, which has held strong home prices and increasing sales volume despite the volatile economy and weak consumer confidence. The New York Times reported that the median sales price for Manhattan apartments has held steady between $850,000 and $911,333, while the number of sales during the second quarter increased by more than 15 percent compared to the same time in 2010.

Pamela Liebman, CEO of the Corcoran Group, told the news source that the local housing market slowed in August after the federal credit rating was lowered, but regained strength by the end of the month. Hall Willkie, president of Brown Harris Stevens, reported that the average sales price rose 1 percent to $1.43 million due to an increase in transactions of more than $5 million.

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