NEW YORK CITY-Despite a slight slowdown in investmentsales volume in the first quarter of 2012, low supply ofavailable properties and high-demand from international buyers isdriving up competition for prime assets—and pricing. Officials fromMassey Knakal Realty Services said at a pressbriefing on Tuesday morning that while total sales clocked in at$6.9 billion in Q1, a massive amount of transactions are incontract to close in the second quarter, which is expected to farsurpass the firm’s first quarter numbers.

“Demand is excessive,” said Robert Knakal,chairman at Massey Knakal, noting that product all across thespectrum—especially elevator apartment buildings—are achievinghigher-than-asking prices and receiving multiple qualified bids,with Manhattan and Brooklyn standing out as the top performingboroughs for sales activity.

“We have high net-worth individuals and the old New Yorkfamilies that are very, very strong and active in the marketplace,”Knakal said. “The institutional capital that evaporated from themarket for a couple of years after the credit crisis set in, andnow it’s back in full force.”