In Manhattan, average sale prices for all apartments increased29% to $1,548,000. The increase in Manhattan apartment prices,particularly for condominiums, is driving the citywide rise inhousing prices, according to REBNY. Citywide condominium salesprices increased 29% to an average of $1,316,000, while inManhattan, average sales prices for condos increased 33% to$1,834,000. The figure for Manhattan tapers off to a 9% increasewhen sales at ultra-high end properties such as the Plaza and 15Central Park West are factored out.

"In the midst of falling property values nationwide, prices arestill rising throughout New York City, particularly for apartments,despite some declines among single-family homes," says StevenSpinola, REBNY president, in a news release. "Manhattan averagesales prices experienced substantial gains in the quarter and ledto the citywide increases, but Brooklyn and Queens apartmentaverage sales prices also saw increases, and are clearly retainingtheir value." Brooklyn and Queens apartment prices rose 3% to$500,000 and 7% to $286,000, respectively, while condo prices forthe respective boroughs increased 1% to $596,000 and 10% to$445,000 over 12 months.

Spinola adds, "Many industry watchers like to point out that,despite rising average condo sale prices in Manhattan and Brooklyn,the number of sales are down compared to 2007, which was a banneryear. However, based on the condo sales in the first two quartersof 2008 in Manhattan and Brooklyn, we will easily surpass thenumber of condo sales recorded in these two boroughs in 2006, ayear in which the housing market was robust."