3rd Quarter Manhattan sales dipped 11.3% since the same time last year. It is the 4th consecutive quarter of declines. As sales declined prices keep falling also. The median price slid 4.5% to $1.1million. The listing discount was about the same as last year @5%. The amount of properties on the market increased by 13%. it was the highest increase since 2011.
Resale inventory increased annually for 4 starring quarters. The number of days on the market increased by 15% since last year. The luxury market is shifting lower with the top 10% at the lowest level in 3 years.
The rate of new development sales decline was double that of resales. New development inventory is going to increase even higher when 7900 new condos come on the market in 2019. The average number has been around 3,000 to 4,000.
Whats behind the numbers?
The slowness of sales is being caused by sellers who are still anchored to outdated prices when interest rates were lower and the new tax laws weren’t in place. Buyers on the other hand are better connected to market conditions. Buyers are grappling with the new federal tax cap on mortgage interest deductions as well as rising mortgage rates. The disconnect between sellers and buyers is the cause of the dip in the number of sales.