Wednesday 5 October 2022 03:27 AM Manhattan apartment sales FELL 18% in the third quarter - the first drop since ... trends now
New York City's real estate crisis may not just be limited to office buildings, as apartment sales fell by double digits in the third quarter.
Apartment sales in Manhattan dropped 18 percent, the first dip in sales since 2020 amid a decline in the stock market, according to Miller Samuel and Douglas Elliman.
Despite the drop in sales, prices remain extremely high in Manhattan, as the average apartment price went up 4 percent to $1.96million. However, experts say those price increases are slowing down too.
The last time apartment sales dropped in the borough it was the fourth quarter of 2020, still well in the pandemic, when sales went down 21 percent.
Miller Samuel CEO Jonathan Miller told CNBC that 'the boom in Manhattan has been interrupted.'
New York City's real estate crisis may not just be limited to office buildings, as apartment sales fell by double digits in the third quarter
Apartment sales in Manhattan dropped 18 percent, the first dip in sales since 2020 amid a decline in the stock market, according to Miller Samuel and Douglas Elliman
Despite the drop in sales, prices remain extremely high in Manhattan, as the average apartment price went up 4 percent to $1.96million. However, experts say those price increases are slowing down too
Not everyone is sounding an alarm, with brokers like Toni Haber of Compass suggesting that the dip is merely the market coming back down to earth after the pandemic led to high sales.
Haber adds that 'the real sellers are meeting the buyers' and offering slightly higher discounts, 7 percent in the third quarter, up from 5.6 percent the same time last year.
However, Brown Harris Stevens suggests that the market is going to continue to decline alongside the stock market.
Their report said that 'The full impact on sales and prices won’t be known for at least another quarter' and that closings in the third quarter were largely settled before mid-May and don't reflect the current market.
Signed sales contracts also dropped 29 percent compared to the same period last year and those also suggest a continued dip in the market.
Not everyone is sounding an alarm, with brokers like Toni Haber of Compass suggesting that the dip is merely the market coming back down to earth after the pandemic led to high sales
However, Brown Harris Stevens suggests that the real estate market is going to continue to decline alongside the stock market
Signed sales contracts also dropped 29 percent compared to the same period last year and those also suggest a continued dip in the market
The biggest declines come from some of the most expensive properties, with pre-war apartments along Park and Fifth Avenues, as well as Central Park West, going unsold for months, even years.