Manhattan sales slump: Deals dip 10.8% year-over-year

Inventory levels are high, buyers aren't eager

TRD New York /
Jun.June 28, 2018 09:26 AM

(Credit: Zachary Shakked via Unsplash)

Apartment sales in Manhattan dipped 10.8 percent year-over-year in the second quarter, yet another sign that the residential market is still in the midst of a correction.

Between 2011 and 2017, the median price for Manhattan apartments increased 40 percent. In the second quarter of 2018, the median price decreased 9.2 percent year-over-year to $1.085 million, according to the Wall Street Journal. This is the lowest price seen since the fourth quarter of 2016.

“We are at the tail end of the great correction that began 18 to 24 months ago,” Leonard Steinberg, president of Compass, told the Journal.

Fewer buyers are attending open houses, inventory is on the rise and it’s taking longer for homes to sell. A separate report by Brown Harris Stevens shows that absorption rate rose to 8.2 months in Manhattan in May, a 30 percent increase from the same time last year. The number of unsold listings hit 7,487 at the end of May, a 31.8 percent year-over-year increase, according UrbanDigs.com.

Some brokers say the federal tax law is contributing to the slump. The law limits deductions to $10,000 for state and local taxes, including property taxes. [WSJ] — Kathryn Brenzel


Related Articles

arrow_forward_ios
Brokerage firms are strategizing ways to make up losses after the cost of application fees was capped at $20. (Credit: iStock)

Brokerages on rental application fee cap: “It hurts”

Alex Rodriguez (Photos by Guerin Blask)

A-Rod is coming for NYC and SoFla real estate

There will be 70 agents based at the new office (Credit: iStock)

Compass opens Long Island City office as new-development sales surge

The Daily Digest - Tuesday

New life for Toys “R” Us, Masa Son is “embarrassed” with the Vision Fund: Daily digest

Nooklyn CEO Harley Courts (Credit: iStock)

Brokerage slashes agent commissions, delays payments after rent law change

The Daily Digest - Tuesday

NYC apartment prices hit 4-year low, Pacific Park developers reveal new plans: Daily digest

LeBron wanted it and California’s governor signed it. What the college athlete compensation law means to real estate

Racial inequality in homeownership across US is sharpest in New York: report

arrow_forward_ios