Sunday, December 28, 2014

Fed Money Pumping; The Results in Action

Manhattan apartment prices soared to record levels in 2014, reports WSJ.

The average price of a Manhattan cooperative or condominium topped $1.68 million in 2014 for the first time, an increase of more than 16% from 2013, and 10% above peak prices in 2008 during the last real-estate boom.

The median price for an apartment was $911,000, also a record, up 6.6% from last year and 0.6% from a peak in 2008.

Here's the tip off in the WSJ story that the spike is occurring because of Fed money printing:
The surge in Manhattan real-estate prices is attributed to rising wealth among a narrow slice of high-income New Yorkers and buyers from elsewhere, some analysts said. They say stronger economic growth, a booming stock market and solid bonuses in the financial sector are helping. The Dow Jones Industrial Average closed Friday at 18,053.71, a record high.

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