A Double Whammy for Co-Op Owners

Manhattan co-op and condominium sales dropped more than 25% in the fourth quarter of 2010—bad news for owners of both housing types. However, for properties that did sell, the median condo price rose, while the median co-op price dropped.

To add salt to the wound, maintenance charges for co-opers are slated to increase 5 ½ to 7 ½ percent in 2011—a full percentage point more than the average increase for their condominium-owning counterparts.

The good news? Manhattan’s housing market is still doing better than the national market, and brokers report an increase in signed contracts pending closing.

What’s the difference? With a co-op, you don’t actually buy your apartment, you buy shares of a corporation that owns the building.

Photo credit: Lauren Manning

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