{September 2018} The Tough Market Continues
Welcome to Fall! My favorite season of the year. The Manhattan real estate market continued to feel the downward pressure in September. Prices remained unchanged from July and August. But Days on Market (DOM) stretched out another 10 days to 80 days for closed listings and 113 days for in-contract listings. Compared to this time last year, about the same number of listings went into contract this September. However, roughly 20% fewer listings closed and 30% more listings hit the market. Transactions were still happening but for the most part only when sellers were willing to accept a lower price than those from the last couple of years. There was actually no shortage of buyers. But the buyers were value-minded. Lately, many main-stream media reported on the "record" number of price cuts and the NYC market being down 20-30%. Is it true that by the time you read about something in the papers, it is almost over?
What is the price premium for a Central Park View? The premium was 25% in 2018. But in 2013, 2014 and 2015, during the upswing of the market, the premium was much bigger at around 70%.
The NYC real estate market was the tale of two cities in October. Total transaction volume ticked higher, even though rates moved higher and sentiment was tense. Most of our new clients were understandably quiet. But quite a few of our repeat clients, the real estate veterans, were busy putting deals together.