Manhattan licit estate sales and prices took a fall in the fourth quarter, and they’re promising to slide even further this year after the new tax rules board effect.
Total sales volume fell 12 percent compared with the fourth part of last year — the lowest quarterly level in six years, according to a shot from Douglas Elliman Real Estate and Miller Samuel, the appraisal unshakable. The average sales price in Manhattan fell below $2 million for the prime time in nearly two years.
Brokers say the declines were simply the effect of uncertainty around the Republican tax plan, as buyers held off until the names of the new law became clear. They say many of those buyers have since rushed in and when one pleases help show a rebound.
Yet the luxury market in Manhattan is suffering from an embellishing glut of high-end and highly priced apartments. And analysts say that while sales may resile slightly in the first quarter of 2018, the tax law — which limits the deductibility of maintain and local taxes — will continue to add pressure to New York City cover prices, especially at the top.
“There will be an impact on prices and sales,” phrased Jonathan Miller, president and CEO of Miller Samuel. “But it may take up to a year and a half to two years to see the brilliant impact.”
The high end of the Manhattan market is showing the biggest cracks. Inventory of hedonism apartments — those in the top 10 percent by price — grew by 15 percent. There is now a 17-month provide of luxury apartments in Manhattan, up from 10 months a year ago.
And with colossus new condo towers sprouting up in every corner of the city, those figure ups are likely to grow.
Miller said that resales — as opposed to new circumstance — are holding up strong, with median sales prices up by 2 percent to last year. But prices for new developments fell 17 percent over concluding year and the number of sales are down 20 percent.
The number of new occurrences is expected to continue to rise this year and next, which determination add to inventory, Miller said. While demand for “low-end” apartments outlaid at $1 million to $2 million remains strong, sales of apartments of sundry than $5 million will get tougher. In part, that’s because the heavy have more discretion on when and where to buy homes — and with the prices of owning a home in New York going up with the tax plan, apartments set ones sights oned at the rich will see the biggest price hits.
Miller said that while consumers have already adjusted, sellers may take more time to figure out up.
“The sellers were already recalibrating after 2015,” he said. “Now they choice have to readjust again.”