New York's Luxury Properties Register Soaring Home Prices

April 24, 2008 11:45 a.m. EST

Manhattan, NY (AHN) - While the rest of the U.S. home prices suffered from a downward spiral, the opposite took place in Manhattan. For the first quarter of 2008, home prices rose by 41 percent, with the average home price hitting $1.6 million.

According to the Real Estate Board of New York, the surge in high-end properties resulted to an average 28 percent hike across the city, offsetting the decline in home values at Queens, Staten Island and the Bronx.

Steven Spinola, president of the board, told the AP, "The report shows that Manhattan's luxury market for high-end properties continues to remain untouched by the slowing economy... Manhattan condominiums in particular continue to sell for record high prices."

Aside from Manhattan, Spinola identified other New York neighborhoods with soaring housing prices as the Soho and Tribeca. Average units in Soho was at $2.3 million, while it was $2.2 million at Tribeca.