Issue I

THE REAL ESTATE OBSERVER

New York City, Monday, January 11, 2010

Welcome to the First Issue of THE REAL ESTATE OBSERVER, a web magazine created on January 10th, 2010 by Mariana A. Pavetto, Associate Broker with the Corcoran Group, to service the public’s growing need for accurate and concise information on the Real Estate Market. Soon you will be able to access therealestateobserver.com for more information.

I am happy to inform you that Corcoran has released its Fourth Quarter Corcoran Report, our quarterly survey of residential real estate sales in Manhattan.  This report compares data based on deals that closed in 4Q 2009 (October 1 through December 31) with that closed in the prior quarter and in the same quarter one year ago.

No doubt you have been following the economic news closely over the last year.  If so, you have had your eyes on the real estate market as a key indicator for economic recovery.

This quarter there is reason to be hopeful that the significant devaluation we have tracked since the demise of Lehman Brothers is coming to an end. Although values are down significantly compared with 2008 (median prices are 15% lower than they were one year ago; average price per square foot is 17% lower), prices in the Fourth Quarter were essentially unchanged from the Third, suggesting that buyers and sellers reached price equilibrium after twelve months of downward pressure. This was particularly apparent in the comparison of quarter-over quarter resales: the median price for a re-sold apartment in the Fourth Quarter was $725,000, down 3% from the prior quarter, while the average price per square foot rose 1% to $936.

In the past few months, smart buyers have been taking advantage of reduced prices, low interest rates and tax credits.  The Fourth Quarter was an extremely busy one for closings; when all deals are fully recorded in the public record, we anticipate this quarter will outpace the same quarter one year ago by 48% in number of sales.  In addition, the total available inventory has decreased 36% since the peak in March, restricting choice and increasing competition.

The combination of shrinking inventory, stabilizing prices and increased sales are hopeful signs for the value of real property as we enter the New Year.  I will be tracking them all closely as 2010 unfolds, and would welcome the opportunity to answer any questions you may have about the report or the market generally.

You can access the report online by copying the following address on your browser: www.corcoran.com/thecorcoranreport. If you would prefer a printed copy, do not hesitate to call me or email me at the address below.

Looking forward to speaking with you soon.

Sincerely,

Mariana A. Pavetto

Associate Broker

The Corcoran Group Real Estate

660 Madison Avenue

New York City, NY 10065

Dir 212-605-9269

Cell 917-375-2734

 Fax 212-418-4321

mbp@corcoran.com

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