After strong demand over the past two quarters, market wide transaction activity pulled back during Fourth Quarter 2011 to approximately 2,600 sales, the lowest level of activity since Second Quarter 2009.
The number of quarterly sales was 12% lower than Fourth Quarter 2010 and 20% lower than Third Quarter 2011. The compression in sales this quarter can be attributed to seasonal activity trending downward at the end of each year and low new development inventory.
Co-op median price declined this quarter while average price per square foot held relatively firm from one year ago and declined only marginally from Third Quarter 2011. In the new development sector, supply cannot keep pace with demand and several markets are already under- supplied; when properties enter the market they are highly anticipated and get absorbed rapidly, usually with price increases.
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