The Real Deal New York

Manhattan home prices see sharpest drop since 2009

Prices fell 3.3% year over year thanks to tons of inventory on the market, according to StreetEasy
December 19, 2018 01:00PM

(Credit: iStock)

Home prices in Manhattan slipped to an almost three-year low in November, thanks to a supply glut.

The average price of condos, single-family homes, co-ops and townhouses for sale last month was $1.1 million, a 3.3 percent year-over-year drop, Bloomberg reported, citing a new StreetEasy report.

That’s almost the same level seen in October 2015, and marks the sharpest year-over-year fall since February 2009.

It’s a well-known trend particularly on the luxury end, where many of the biggest deals this year saw significant price chops.

The combination of rising inventory and potential buyers holding out for better deals has helped spur a buyer’s market, according to StreetEasy’s senior economist Grant Long.

About 1,400 new homes hit the Manhattan market in November. That’s 18 percent more than the year before and the second-biggest uptick since the financial crisis.

And while the volume of sales tends to slow down in the fall, it rose 2.8 percent in November.

Meanwhile, Brooklyn and Queens saw sale price gains in November. In Brooklyn, prices were up 1.6 percent year over year; they rose 4.8 percent from the year prior in Queens, in part due to Amazon’s announcement it would have an office campus in Long Island City. [Bloomberg] — Mary Diduch