Today, Elliman released the third quarter 2019 report about Manhattan residential real estate sales data.
Prices have declined in the steepest drop since 2010 when the city was still in the grips of the financial crisis. There’s a drastic mismatch between what buyers want and what sellers are asking for.
Here are the numerical highlights:
- The average sale price for a Manhattan apartment fell 14% since last quarter.
- Nearly all sales (93.6%) closed at or below the last asking price.
- Homes are lingering on the market for an average of 192 days.
- 29% of inventory is priced at over $3 million, but only 10% of closings were above $3 million.
- The number of apartments for sale rose for the eighth consecutive quarter, to 7,352, up 6.2% over 2018.
What the media has to say about this:
CNBC attributes the decline to: “a continued drop in foreign buyers, changes in the federal tax laws that make it more expensive to live in high-tax states and a glut of high-priced condos have all converged to create the worst real estate market in Manhattan in a decade.
Bloomberg’s Oshrat Carmiel reports that “Manhattan Resale Home Prices Drop Most Since ’11 as Sellers Cave” “in a market swamped with choices” there are more signs that “sellers are capitulating” and “the market is going through what could be called a Reset.”
The Wall Street Journal conjectures that the second quarter results were rosier than expected since buyers were rushing to close on purchases before the new luxury mansion tax took effect in July.
What does this all mean for Manhattan residential real estate?
There are amazing and unprecedented deals to be had on Manhattan condos. Sellers who need to sell are feeling boxed in and are ready to negotiate heavily. At Compound, we believe this is a great time to get into this asset class--possibly the most attractive time we will see in a very long time.
Visit Compound Manhattan to learn more about how to get started.