This is a partial transcript from Your World with Neil Cavuto, July 10, 2003, that was edited for clarity. Click here for complete access to all of Neil Cavuto's CEO interviews.
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TERRY KEENAN, GUEST HOST: Remember all that talk after Sept. 11 that the New York City real-estate market was going to tank? Well, think again. The market not only came roaring back. We now have this: the biggest residential real estate deal ever, a cool $45 million for an apartment in the new AOL Time Warner (AOL) building near Central Park.
And joining me now with all the buzz on the luxury housing market (search) is the president of the Corcoran Group, Pam Liebman.
And congratulations. A nice commission. Forty-five-million dollars. What does it buy you up on Central Parkway?
PAM LIEBMAN, PRESIDENT, CORCORAN GROUP: It buys you one of the greatest apartments ever, I think, in the history of the New York market, maybe even in the entire country. You get a floor and a half at the AOL Time Warner Center, which I think most people now recognize as the premier luxury condominium in New York City.
KEENAN: And how many square feet, how many bedrooms and bathrooms?
LIEBMAN: Believe it or not, the space is raw. Right now, it’s configured as a couple of apartments, and we’re not quite sure what the buyer will do with the apartments, whether he’ll combine it into one fabulous apartment, possibly even leave it as a couple apartments.
KEENAN: So this buyer’s a British financier who wants to remain nameless. Are a lot of these apartments selling to foreigners?
LIEBMAN: There’s a mixed bag. There’s a good demand for these apartments from the international clients and from the domestic clients as well. Lots of them come right from New York, right from the neighborhood.
KEENAN: You know, they’re twin towers. They’re going up right now. A lot of people said after 9/11 not only would people not want to work there, they certainly wouldn’t want to live there. Yet they’re selling well.
LIEBMAN: The building is selling incredibly well, and now that the building is close to being completed and you can actually ride up and take a look at the phenomenal views from the top of this building, they’re selling even better. The resurgence of interest in these buildings has been phenomenal. I think all the talk after 9/11 about people fleeing the New York City real-estate market was to be completely proven false as 2002 was the greatest year in the history of New York real estate, and now we’re seeing tremendous validation of super high-end luxury real estate in New York.
KEENAN: People always like to look at New York City apartments, even if they live on the other side of the country, and, as prices have risen, what you can get for your money has really come down a lot. And give us an example of what a million dollars would buy these days.
LIEBMAN: A million dollars could buy you a nice, two-bedroom co-op apartment on...
LIEBMAN: We always say that third bedroom costs a million dollars.
KEENAN: Oh, expensive child, if you decide to have two, I guess.
KEENAN: I want to also ask you about the second home market because, with the interest rates this low, the second home market is just exploding as well, contrary to expectations.
LIEBMAN: Right. It’s so hard almost not to buy an apartment or a second home now if you can afford it because, with the interest rates being as low as they are, it feels like such a great place to put your money. It’s cheap to buy, you can enjoy it right away, and a lot of people don’t know what else to do with their money. Plus, they get a great place to live in and enjoy.
KEENAN: We see the mortgage rates backing up a little here, 30 year back up 5-1/2 percent. If rates start to go back up into the 6-percent range, do you expect to see the market to cool off precipitously?
LIEBMAN: I think we’ll see some bit of a slowdown, if the rates go up to 7 percent. However, the rates are still very low. I mean, years ago, we were looking at 9-percent rates. When they went to 8, they were low; 7, they were low. I mean who ever thought they were going to get to 5?
KEENAN: All right. Thanks. Thanks for joining us with details on this apartment.
LIEBMAN: You’re welcome.
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