Photo: Marco Cortese/Flickr
Second quarter NYC Department of Finance data revealed a steep drop in Manhattan apartment sales. The sluggish sales began the second half of last year in the luxury market, and have not only continued this year, but slowed further.
The figures, released this past week, are in fact the lowest since 2009, a recession year.
Sales in the second quarter were down 10 percent from the same quarter in 2015. Co-op sales fell by a whopping 26 percent, while apartments in the under 1 million dollar market fell by 20 percent.
Analysts believe this is indicative of a serious correction. The upcoming US Presidential election and the recent “Brexit” abroad could further negatively impact sales in 2016.
Condominium sales were up 10 percent, many of which were at new developments. The steady rise of prices was driven in part by condominium sales, but it is important to note that many of these sales actually went into contract months or even years ago. They do not reflect the market’s current climate.
Olshan Realty’s Donna Olshan told The Real Deal that overpriced properties contributed greatly to the sales slowdown. Some luxury properties have sat on the market for nearly a full year. This is sharply up 19 percent from the previous year.
And while there has been a slight increase in sales since May — indicating sellers might be growing more flexible — current data suggests that prices are still just too high.
Buyers could find negotiating a fair price with even the most reluctant seller a tad less farfetched under these current conditions Corcoran Group president Pamela Liebman commented to The Real Deal.