Manhattan condo prices jumped a whopping 36 percent the first quarter of 2008 to a record $1.9 million, according to the Manhattan Market Overview. The gain reflected higher price bumps at the upper end of the condo market with median sales prices lingering at $1.1 million -- up 17 percent over the same time last year.

Prices appreciated despite a growing inventory. More than 3,300 units hit the market for the spring buying season, up 11 percent over first quarter 2007. New condo development made up nearly half of the inventory at 47 percent, up from 29 percent of the market last year.

The regional economy has performed well, in the face of slowing gross national product. The Overview reports: "Tourism and hotel occupancy rates are at or near record levels and the New York City government is financially well positioned for the next two years. The US dollar has set new lows against several currencies, which continues to bring new sources of demand, with specific emphasis on new condo development projects."

Miller Samuel, an appraisal firm in New York, compiled the report. President and CEO Jonathan Miller states: "We appear to have entered a transition period, as reflected in the sharp decline of sales this quarter and modest uptick in inventory," noting that the sharp change in prices is reflective of greater activity for higher-priced apartments.

Published: April 9, 2008

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Mr. Carr has covered real estate since 1989. He is the author of Real Estate Investing Made Simple. Got a personal real estate issue? Post your questions and comments at Anthony’s blog: commonsenserealestate.blogspot.com.