The past year hasn’t been the best one for sellers hoping to part ways with their Manhattan properties.
Real estate sales in Manhattan have been on a double-digit decline for four straight quarters, CNBC reported. Sales in the borough fell by 11 percent from the third quarter of 2017 to the third quarter of 2018, new data from Douglas Elliman Real Estate and Miller Samuel Real Estate Appraisers & Consultants shows.
Resales of existing apartments also declined for four straight quarters, marking the first time that’s happened since the financial crisis, the outlet reported.
The average and median prices for a Manhattan apartment in the third quarter of this year, meanwhile, stood at $1.93 million and $1.1 million — 4 and 5 percent drops, respectively, according to the data.
Brokers attributed the declines to “an oversupply of luxury units, a decline in foreign buyers and changes in the tax law that make it more expensive to own property in high-tax states,” the outlet reported.
The tax bill passed last year put a $10,000 cap on the federal deduction for state and local taxes, a policy critics have said disproportionately affects homeowners in states like New York and New Jersey.
“We’re in reset mode, and I think we still have a little way to go,” Miller Samuel CEO Jonathan Miller told CNBC. “It’s way too early to think about the market seeing significant improvement.”
Even apartments with price tags below $1 million haven’t been immune to the decline due to rising interest rates, the outlet reported. Sales of one-bedroom apartments with an average price of $815,000 declined by 4 percent from the third quarter last year to the same quarter this year, according to the data.
Manhattan’s luxury market, meanwhile, saw its average sales price plummet by 12 percent in the third quarter.
Miller, however, noted that the correction in the market “isn’t anything like the first quarter of 2009.”