In a decline that the industry has no doubt seen coming, Manhattan resale home prices have declined the most in the last four years. According to a Bloomberg article, the median price of previously owned condominiums and co-ops fell 6.3 percent in the fourth quarter from a year earlier to $900,000. It was the first annual decline in this sector since the beginning of 2015, and the biggest since the third quarter of 2012. Resales dropped 8.1% in that quarter.
This is a growing sign that sellers have diminished expectations for the quick sale and there will be a growing need for correctly pricing inventory to market needs. The days of overpricing seem to be of the past as the number of resales has been dropping for the previous five quarters and buyers are are reluctant to invest in the more costly listings.
Corcoran Group reported that all completed sales, including previously owned and newly built homes, dropped 15 percent from a year earlier to 3,104. Signed contracts also slid 15 percent. Downtown Manhattan, below 34th Street through Tribeca, was an exception. Sales in that area climbed 11 percent to 983. Inventory jumped 33 percent to 1,826 listings, according to the brokerage. Also, previously owned properties that sold in the period spent an average of 80 days on the market, up from 71 days a year earlier. It has also been reported that Manhattan resale deals totaled 2,385 which is a decline of 1.5 percent.
Property management companies in Manhattan will have to invest more time in making sure accommodations and customer service are of value benefit as an additional incentive to buyers. It will assist sellers in an accurate pricing method when sitting down with realtors and potential purchasers when the time is right.