report<\/a> by New York brokerage Stribling and Associates.<\/span><\/p>\n\u201cAs with the first three quarters of 2018, a level of uncertainty in the market impacted sales during the fourth quarter. The momentum has shifted and many buyers will only engage if they feel they are getting a \u2018good deal\u2019 relative to the market,\u201d Garrett Derderian, director of data and reporting at Stribling and Associates, tells Livabl.<\/p>\n
In the fourth quarter of 2018 \u2014 the weakest performing fourth quarter across all metrics since 2012 \u2014 total sales were down 10 percent year-over-year, and 25 percent below a fourth-quarter high recorded in 2015.<\/p>\n
At 1,906, fourth quarter sales hit a post-crash low by falling below the previous low set in 2011.<\/p>\n
\u201cWe are not experiencing the brisk aspirational transactions of years past \u2014 everything is moving a little bit slower, buyers and sellers are taking a little bit longer to negotiate,\u201d reads the report.<\/p>\n
Properties spent the greatest average number of days on market in six years. The average Manhattan home spent 152 days on the market, an increase of 20 percent from the previous year.<\/p>\n
Manhattan inventory was up 13 percent year-over-year, topping out at 7,000 units. Derderian noted that there is \u201ccertainly an oversupply\u201d of units on the Manhattan market at the moment as the \u201creal\u201d inventory figure is likely much higher, but many sellers take their properties off the market for the holidays only to relist early in the new year.<\/p>\n
Seller discounts continued to rise across all property types. The typical discount was 7.9 percent off the asking price in the fourth quarter of 2018, up from 6.4 percent in the previous quarter.<\/p>\n
At 10 percent, the Financial District saw the greatest cuts due to an oversaturation of new construction condos flooding the market. Upper Manhattan saw the smallest discounts at 5 percent.<\/p>\n
And with an abundance of available units and an overall cooling taking place, Derderian says the Manhattan housing market is \u201cripe with opportunity\u201d for homebuyers.<\/p>\n
\u201cThe Manhattan market is taking a breather. Prices have escalated significantly since 2012, primarily driven by new developments. Although the last time we saw so few sales in a fourth quarter was 2011, the average sale price was 42 percent higher in 2018 compared to 2011,\u201d Derderian tells Livabl.<\/p>\n
Looking ahead, Derderian says that buyers should expect to see a continuation of the second half of 2018 in the new year.<\/p>\n
\u201cDeals will take longer to complete, as sellers adjust price expectations. We do not foresee an impending \u2018cliff,\u2019 but rather a gradual slowdown in appreciation, if not some depreciation, until the market recalibrates,\u201d says Derderian.<\/p>\n
Meantime, one thing Derderian doesn\u2019t attribute to the Manhattan sales slowdown is rising interest rates.<\/p>\n
\u201cWhile they are rising, historically, they are still near record lows. In fact, some buyers entered the market to lock in a rate, as they are forecast to continue to rise,\u201d he says.<\/p>\n
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