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