(Source: PRNewswire)NEW YORK, Oct. 3 /PRNewswire/ -- The Third Quarter 2008 Prudential Douglas Elliman Manhattan Market Report reveals the surge of new development closings has eased and the gains in all price indicators was more modest and less subject to skew this quarter. One of this report's new features this quarter is an additional analysis of new development versus re-sale. Market share of new development has slipped over the past year from 32.5% of all sales to 30.1%. The average price per square foot of all new development was $1,320 this quarter, down 1.5% from the prior year quarter while re-sale price per square foot was up 4.3% to $1,142 per square foot, as higher end new development has been absorbed and higher end re-sale properties continued to sell.

"The events of the second half of September in the financial markets and Washington have not shown up in the market data for the quarter aside from the continuation of a lower level of sales activity compared to last year's record levels," said Jonathan Miller, President/CEO of Miller Samuel, the firm that prepared the report. "The market is currently experiencing a 'pause' after the bailout of Fannie Mae and Freddie Mac near the end of the quarter. The reduction in affordable mortgage products continues to hamper buyers, not only in New York, but in most housing markets across the country."

"We have faith in New York City real estate and believe that the bail-out plan will help all over, since it allows the bank to free up credit for consumers," said Dottie Herman, President and CEO of Prudential Douglas Elliman. "Prices in Manhattan remain stable, inventories are at normal levels and people still want to live, buy and raise their families here."

Highlights from the 3rd Quarter Prudential Douglas Elliman Manhattan Market Overview include:

   --  Median sales price increased 7.4% to $928,263 over the prior year       quarter result of $864,397.   --  Price per square foot increased 4.3% to $1,193 over the prior year       quarter result of $1,144.   --  Average sales price increased 8.1% to $1,480,363 over the prior year       quarter result of $1,369,486.   --  The number of sales fell 24.1% this quarter to 2,654 units as compared       to the 3,499 units sold in the prior year quarter.   --  Listing inventory increased 34.6% to 7,003 units from the prior year       quarter total of 5,204 units.   --  Days on market was 134 days this quarter, 11 days longer than the 123       days on market average in the same period last year.   --  Listing discount was 2.6%, up from 2% in the same period last year.     Co-op Market    --  Median sales price of a co-op this quarter was $688,000, up 2.9% from       last year at this time.   --  Average price per square foot increased 3.4% to $1,056 from the prior       year quarter.   --  Average sales price increased 3.8% to $1,161,302 from the same period       last year.   --  Inventory levels for co-ops increased 35.9% to 3,360 units from the       prior year quarter.   --  Co-op listings are 98.1% re-sales.     Condo Market    --  Median sales price of a condo this quarter was $1,220,000 this       quarter, up 8.9% from last year at this time.   --  Average price per square foot increased 4.4% to $1,334 from the prior       year quarter.   --  Average sales price increased 10.4% to $1,809,684 from the same period       last year.   --  Inventory levels for condos totaled 3,643 units, up 33.3% from the       prior year quarter total.   --  New development comprised 43.6% market share of condo listings, up       from 36.7% in the same period last year.     Luxury Market (upper 10% of all co-op and condo sales)    --  Median sales price of a luxury apartment this quarter was $4,022,087,       up 1.8% from last year at this time.   --  Average price per square foot increased 3.3% to $2,075 compared to the       same period last year.   --  Average sales price was $5,790,229, up 13.8% from the same period last       year.   --  Inventory jumped 35.9% to 1,270 units from the same period last year.     Loft Market (co-op and condo sales)    --  Median sales price of a loft apartment was a record $1,920,000 this       quarter, up 12.9% from last year at this time.   --  Average price per square foot increased 8.7% to $1,278 from the same       period last year.   --  Average sales price increased 6.9% to $2,211,864 from the same period       last year.    --  The report's author, Jonathan J. Miller, President/CEO of Miller       Samuel.  Miller provides input for the Federal Reserve's Beige Book,       and serves on the NYC Mayor's Economic Advisory Panel and the NYC       Council Finance Committee Economic Advisory Board. On Matrix       [matrix.millersamuel.com], he blogs about the real estate economy.    --  Dottie Herman is President & CEO of Prudential Douglas Elliman, the       company that distributes the report.  Prudential Douglas Elliman is       New York City and Long Island's preeminent residential broker, with       nearly 70 offices, over 3,300 real estate agents and a network of       national and international affiliates. Herman is frequently quoted in       The New York Times, The Wall Street Journal, Crain's, and The New York       Post.     Full data tables and analysis are immediately available upon request.    ABOUT THE MANHATTAN MARKET OVERVIEW   

The Manhattan Market Overview is New York's first quarterly residential market report, and is developed from the largest and most sophisticated database of transactions in New York. The report was the first to track co-ops by price per square foot, to analyze square footage of all sales, to analyze the market by median sales price, to break out the market by bedrooms (Studio, 1, 2, 3, 4+), to analyze market-wide apartment inventory, to analyze days on market and absorption, to drop price per room as an obsolete market indicator, to break out sales by specific neighborhoods and to analyze the uptown co-op and condo market.

About Miller Samuel (http://www.millersamuel.com/) - Miller Samuel is a New York based real estate appraisal services firm established in 1986. Miller Samuel provided property valuations of more than $5,000,000,000 in the past year. The company's clients include domestic and international financial institutions, law firms, consulting firms, developers, employee relocation companies, co-op and condo boards, managing agents, individuals and government agencies. The firm developed what is now the largest database of Manhattan co-op and condo sales covering the sales market back to the late 1970s.

Prudential Douglas Elliman Real Estate is New York's largest residential brokerage, over 60 offices, more than 3,500 real estate agents and a network of national and international affiliates. Prudential Douglas Elliman, ranked in the top five of all real estate companies in the nation, closed $14 billion in sales in 2007. Prudential Douglas Elliman also controls a portfolio of real estate services, including Manhattan's largest residential property manager, Douglas Elliman Property Management, as well as PDE Title and Preferred Empire Mortgage Company. For more information on Prudential Douglas Elliman as well as expert commentary on emerging trends in the real estate industry, visit the Prudential Douglas Elliman site at http://www.prudentialelliman.com/.

Prudential Douglas Elliman

CONTACT: Barbara Wagner, +1-212-843-8035, bwagner@rubenstein.com, orNancy Raia, +1-212-843-9331, nraia@rubenstein.com, both of RubensteinAssociates, for Prudential Douglas Elliman; or Hayley Rush of PrudentialDouglas Elliman, +1-212-891-7035, hrush@elliman.com

Web Site: http://www.millersamuel.com/http://www.prudentialelliman.com/