| For a little over a year now, the strength of the | | | | over the past quarteror so, though prices have |
| New York City realestate market has been a | | | | not dropped. Pricing in housing marketsoften |
| stark contrast to the national market. Asthings | | | | follows changes in the volume of activity, even in |
| worsened across the country, the news was | | | | the luxurymarket. |
| either great or just | | | | Weighed against this change, however, is the |
| OK for New York City. | | | | weak dollar, which hasdramatically increased |
| As the market finally started to show signs of its | | | | foreign demand for luxury New |
| own mortality towardsthe end of 2007, the | | | | York City apartments. |
| overall numbers were still fairly positive. Theluxury | | | | In addition, the strong end-of-the-year bonus |
| housing market was propping the rest of the | | | | season will continueto bolster the spending plans |
| city's market up. | | | | of wealthy families in the city throughoutmuch of |
| Most luxury markets are typically well-removed | | | | the year. |
| from the business cycle,so it came as little | | | | With supply and demand both in relatively strong |
| surprise that, even in the wake of the | | | | places, it is difficultto see a severe drop off in |
| financialmarket's problems, the luxury apartment | | | | prices in the luxury market. For instance,the credit |
| market held up well againstthe national downturn. | | | | crunch, for instance, has led many banks to |
| What was a surprise however, was just how | | | | tighten theirlending standards, according to a |
| strongly the market performed. | | | | recent study by the Federal Reserve. |
| Several new buildings full of luxury | | | | However, few, if any, of those looking to |
| Manhattanapartments opened, andaverage prices | | | | purchase luxury New Yorkapartments do not |
| for the luxury market continued to climb. | | | | have sufficient credit or collateral to secure aloan. |
| As the economy sinks further into a recession, | | | | That's not to say interest rates will not increase, |
| and as the news of | | | | even in the wakeof the Fed's strong interest rate |
| Bear Stern's demise spreads, worries are | | | | cuts. But it is unlikely that anincrease in rates will |
| beginning to mount over justhow long the luxury | | | | dramatically harm demand for housing among |
| New York apartment market can keep it up. | | | | thewealthiest members of the world's richest city. |
| Market activity, by most accounts, has slowed | | | | |