Manhattan resi sales hit a 6-year low in 2018’s first quarter

2,180 deals closed -- a 25% year-over-year drop

TRD New York /
Apr.April 03, 2018 07:00 AM

Manhattan closed sales in first quarters of 2018 (Credit: Douglas Elliman)

For now, selling an apartment in Manhattan remains an out-of-sync dance between buyers and sellers.

The number of closed sales in the first quarter of 2018 fell to 2,180, a 24.6 percent decrease from the same time last year, according to a new report from Douglas Elliman. The total is the lowest seen in six years and the largest annual decline in nine years, said Jonathan Miller, CEO of appraisal firm Miller Samuel and author of the report.

Part of the reason for the decline is the exhaustion of so-called “legacy contracts” — those inked based on floor plans back in 2014. Another reason is a lack of urgency among buyers and high prices. The median apartment sale price in the first quarter was $1.08 million, a 2 percent decrease year-over-year and a 1.7 percent increase from last quarter.

Steven James, CEO of Douglas Elliman’s New York brokerage and director of sales for its East Side office, noted that there’s “unease” among buyers about the new federal tax law and the rise in interest rates. He expects that as the impact of both becomes more clear and as sellers become more realistic in pricing, there will be an uptick in sales.

“We all saw that this was coming,” he said. “Buyers wanted to catch their breath, and they wanted a little more give in prices than what they were getting from sellers.”

A separate report by the Corcoran Group notes that resale co-ops saw a 2 percent increase from last year, due in large part to a 14 percent increase in inventory and a drop in price. The median sales price for these units was $820,000 — 25 percent below the median price for all sales in Manhattan.

Miller noted that only 9.4 percent of sales were the result of a bidding war, down from the 31 percent seen in the third quarter of 2015. The absorption rate rose to 8.4 months, up from last year’s 6.1 months, the report showed.

“I see 2018 as a period of price discovery between buyers and sellers, as uncertainty is a big part of the equation,” Miller said. “It’s going to take them a while to get to some equilibrium on what the value is for their properties.”


Related Articles

arrow_forward_ios
John Giannone and Jac Credaroli (Credit: iStock)

Two Elliman agents launch platform to provide renters, buyers and sellers up to $50K in unsecured loans

Two Elliman agents launch platform to provide renters, buyers and sellers up to $50K in unsecured loans
Jacob Sudhoff and Scott Durkin (Credit: Sudhoff Companies, Emily Assiran, iStock)

Douglas Elliman is coming to Texas

Douglas Elliman is coming to Texas
Douglas Elliman chairman Howard Lorber (Credit: Getty Images and iStock)

Elliman’s revenue rose 18%, after sales frenzy to avoid New York’s new transfer tax

Elliman’s revenue rose 18%, after sales frenzy to avoid New York’s new transfer tax
Gov. Andrew Cuomo with Judge Lawrence Marks and Judge Daniele Chinea (Getty, Linkedin, iStock)

Flip-flop on eviction ban extension highlights state’s chaotic response

Flip-flop on eviction ban extension highlights state’s chaotic response
Nelson Rockefeller and 812 Fifth Avenue Photos via Getty; StreetEasy; Google Maps)

Fifth Ave co-op owned by Rockefeller family hits market

Fifth Ave co-op owned by Rockefeller family hits market
Joe Jonas and Sophie Turner with 199 Mott Street (Getty; Modlin Group)

Joe Jonas and Sophie Turner list NYC pied-à-terre for $5.9M

Joe Jonas and Sophie Turner list NYC pied-à-terre for $5.9M
A million homeowners haven’t requested forbearance on their mortgages — and are now at risk for foreclosure and eviction. (iStock)

1M struggling homeowners didn’t request forbearance. Now what?

1M struggling homeowners didn’t request forbearance. Now what?
(iStock)

Landlords lost about $9B in rental payments last quarter: report

Landlords lost about $9B in rental payments last quarter: report
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...