Manhattan high-end real estate showed new signs of cooling during the second quarter, with secondary prices sliding and units staying on the market longer, according to a new report released on Tuesday.
The average resale apartment price in Q2 fell 5% from the comparable quarter last year, to $1,641,989, Brown Harris Stevens (BHS) said in its quarterly survey of New York City real estate.
During that time frame, resale closings stagnated, and sellers offered their biggest price discounts in nearly a decade, BHS said.
“Resale apartments sold in the second quarter spent an average of 131 days on the market,” the firm noted in its report. “This figure was 27% more than a year ago, and the highest level in seven years. Sellers offered their biggest price discounts in nine years, receiving on average 96.1% of their last asking price.”
Manhattan cooperative prices averaged $1,337,649, falling 4% from the year-ago quarter, while 3+ bedroom apartments plunged 10%, BHS said.
Only studio co-op units, which rose compared to 2018, were spared the wrath of falling prices.
However, that weakness was partly offset by a surge in new development closings, which saw an 11% jump in sales compared to the comparable period in 2018, and a 3% hike in the overall average apartment price.
BHS’s report is the latest sign of a leveling off in New York home prices, an effect that’s also being seen nationwide — even with rock-bottom interest rates that make buying a relatively attractive prospect.
Although some of the froth is coming off the Big Apple’s home prices, the luxury market continues to be saturated—and is driving up average prices. Two new high-end buildings in hot neighborhoods,15 Hudson Yards and One Manhattan Square on the Lower East Side, have driven much of the new luxury sales this quarter, BHS found.