Manhattan residential condo prices down 15% in fourth quarter 2017
Posted by Wei Min Tan on January 9, 2018
According to Miller Samuel Appraisers, the average price of a Manhattan condominium came down 15 percent to $2.654 million in the fourth quarter of 2017 when compared to a year ago. Price per square foot was also down 15 percent to $1,965 while transaction volume was down 14 percent.
The already slow market was made weaker as buyers held off while awaiting results of the proposed Trump tax bill, which was signed into law on Dec 22, 2017.
The luxury market, with average price of $5.727 million, performed even worse, with price per square foot down 18 percent to $2,630.
On the rental side, average rent was $4,113 (down 2.6%) while rent per sqft was $65.97 (down 6.5%).
We’ve been advising buyer clients on taking advantage of this weak market the past 2 years. Many clients made excellent purchases at new developments like One Seaport, 111 Murray and 91 Leonard. From a price trend perspective, 2017 is the first time Manhattan shows a decline since the 2009 recession (when the decline lasted one year and re-stabilized in 2010).
The new Trump tax law, which increases after-tax housing cost, should make the soft market last maybe another year. Investor buyers should take advantage of this period.
Read more: New York property historical price trend
Source: Miller Samuel Appraisers