Manhattan real estate just had a major shock. The median sales price of a Manhattan home dropped under $1 million during the past three months. This is the largest plunge since the 2008 financial crisis.
“The average sale price for a Manhattan apartment fell 14 percent in the third quarter, according to a report from Douglas Elliman and Miller Samuel. That was the steepest drop since 2010, when the city was still in the grips of the financial crisis, according to Jonathan Miller, CEO of Miller Samuel, the appraisal and research firm,” CNBC reported.
Listen to GHOGH with Jamarlin Martin | Episode 67: Jamarlin Martin Jamarlin goes solo to discuss the NFL’s entertainment and “social justice” deal with Jay-Z. We look back at the Barclays gentrification issue in the documentary “A Genius Leaves The Hood: The Unauthorized Story of Jay-Z.”
“The third quarter of 2019 was undoubtedly the most challenging quarter in recent memory, especially for condo sales,” Garrett Derderian, CORE’s managing director of market analysis, told the New York Post.
“Market prices have gone from what was once described as the kindest, gentlest correction to a near free fall. The last time conditions were described in such a way was in the height of the recession.”
There are several reasons for the drop — fewer foreign buyers, a glut of high-priced condos, as well as changes in the federal tax laws that now make it more expensive to live in high-tax states.
“The so-called mansion tax on apartments over $2 million took effect July 1, so many buyers rushed to close on deals before the tax, effectively stealing demand from the third quarter,” CNBC reported.
