The real estate market for the whole country may have suffered a lag but Manhattan’s real estate prices are increasing compared to the price of real estate last year. Third quarter prices of Manhattan apartments went up by $1.5 million compared to the same period last year.

Sales of condominium units at Manhattan’s Plaza also helped increase the average price of real estate for this year. Another factor being eyed is the few high end market purchases.

However, data from real estate brokerage firms show a slowing down of Manhattan’s real estate market with fewer sales compared to the sales figures five years ago. There are also more contract cancellations this year. The strength of Manhattan’s real estate market lies in its luxury apartments but the growth of this sector has slowed down too. However, this is expected considering that it took almost two years after the 1987 stock market crash before Manhattan’s real estate felt the crisis.