In this video clip, Diana Olick of CNBC and Jonathan Miller discuss the rise in the Manhattan Luxury Real Estate Market, as defined by the top 10% of sales (above $4M most recently). Median prices were up 15% year over year.

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Some of the commentary, however was not completely on the mark: Diana mentions that year over year volume was up and attributes it in part to the Homebuyer Tax Credit. For the overall market while that had some impact, it had little impact on the luxury sector. 4th Quarter 2009 marked the ‘turnaround’ quarter for the $2 Million plus property sales with a sharp rise in sales between October and December 2009, a resulting decline in inventory. In Manhattan’s Luxury Real Estate sector, 2010 proved to be a boon. It was perhaps aided in part by stabilization in the stock markets. Additionally national and international High Net Worth Individuals displayed high confidence in New York trophy properties, snapping up second homes, investment opportunities while achieving value buys at the same time. Even with the increase, the super high end (greater than $30 Million) still was behind the 2006/2007 peaks in volume and price.