According to a report from Douglas Elliman and Miller Samuel Real Estate Appraisers and Consultants, Manhattan real estate average sales prices are down by 5% to $2.1 million. [The Miller Samuel report available here]
This is the 2nd consecutive quarterly fall since the GFC (global financial crises). Manhattan total sales actually fell by 17% from the same period 12 months ago.
Manhattan real estate is in crisis, reports NYC opinion & news outlets. CNBC reports “Manhattan real estate has worst second quarter since financial crisis” in its post on Tuesday, July 3 2018.
“Manhattan had its worst second quarter since the financial crisis, with prices and sales dropping and inventory rising … ” writes Robert Frank of CNBC.
There is a large amount of property stock about to flood the NYC market. Mixed with the recent decline of foreign buyers, brokers are claiming the recent downturn is only temporary. Analysts disagree.
In the report provided by Miller Samuel Inc., Jonathan Miller, CEO says “The market is resetting to a lower, more long-term level of activity.”
“Everyone is just dancing around the impacts right now, I don’t think it will really be clear to people until they write that (tax) check next April,” Miller adds.
Given the external factors such as tax changes that are impacting the property market right now, it is no surprise the industry is about to step sideways.
In a final statement, Miller added: “The market is resetting to a lower, more long-term level of activity.”