The Real Deal New York

Manhattan resi sales down 15.3% YOY

Brokers blame quadrennial politics for slowdown

October 03, 2016 08:17AM

Manhattan

The Manhattan apartment market saw its lowest total sales figures since 2011 during the third quarter, which is usually the busiest part of the year. And many brokers said that uncertainty over the presidential election doesn’t bode well for a turnaround.

The number of co-op and condominium sales in the borough fell 15.3 percent from the same quarter in 2015, the Wall Street Journal reported, citing New York City Department of Finance data.

Sales of co-ops fell notably 17.5 percent, and those of lower-priced apartments below the $1 million price point dropped off 22.2 percent. Market experts said a lack of supply was to blame for the slowdown on the lower end of the market.

This was the slowest three months since the third quarter of 2011 when the market was still recovering from the financial crisis.

Brown Harris Stevens TRData LogoTINY president Hall Willkie said the market takes a hit every four years during a national election, but this year is particularly notable.

“It is a much more polarizing event,” he said. “Both sides have dire predictions of what will happen if the other side wins.”

Wilkie said he doesn’t expect the market to recover at least until the holiday season at the end of the year.

Median prices for Manhattan apartments were up 10.5 percent from the third quarter of 2015, but down from peak prices earlier this year.

On Friday, The Real Deal reported that the target offering price of new condos approved for sale in New York City is down 34.4 percent year-over-year, despite only a small decline in the number of offered apartments. [WSJ]Rich Bockmann

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