The second quarter 2018 Manhattan market real estate report revealed data that strongly supports that we are in a buyer centric market this year. It was the lowest number of sales in the second quarter in nine years. The number of transactions fell 17% from the same quarter last year. In addition inventory rose 12% to its highest level since 2012.
The new development share of the market of luxury sales fell to half of all the luxury sales.
The resale market saw a slight increase in the median sales price however inventory was at its highest level in six years and the days on market rose to five years. Half of all Manhattan properties sold below the asking price. That said sales activity slowed universally across all price points.
What’s behind the numbers?
#1. The peak 2014 market had tons of new development luxury contracts that couldn’t close until 2016 or 2017. These contracts pumped up the pricing and the volume of sales. Now these contracts are closed and the pipeline has dried up! As a result the number of sales dropped in 2018.
#2 There is a level of uncertainty as sellers and buyers process the new federal tax law and try to sort out market value. On the bright side , the numbers of sales this quarter are not at historical lows. They seem low because we just recently came off a very hot peak market. Read the Douglas Elliman 2nd Quarter 2018 Manhattan Report here!