High-end sellers are the worst hit by the inventory overload.
At the current pace, it would take nearly 16 months to sell all the luxury units listed in Manhattan in the second quarter, the New York Times reported. That’s a 33 percent increase from a year ago, when those properties would’ve sold in just under 12 months.
Luxury listings in other areas aren’t faring well either. Sales in the Hamptons would also take 16 months — up from 10 and a half months a year earlier. Amid a buyer’s market, the expectation of negotiation has also prolonged the process, The Real Deal previously reported. In the last week of July, luxury properties that went into contract were sitting on the market for an average of 536 days.
On the other hand, the absorption rate for the other 90 percent of listings in Manhattan is much lower: about seven months, the Times reported.
Still, the lower end of the market hasn’t been without its own challenges. The percentage of listings under $1 million that were taken off the market this summer roughly tripled, as TRD previously reported. That’s in part because sellers struggled to offload units as buyers navigate the implications of the new tax law. [NYT] — Meenal Vamburkar