Weakness continues for Manhattan property in Q3, 2018
Posted by Wei Min Tan on October 9, 2018
Manhattan’s property market experienced an 11 percent decrease in sales activity in third quarter 2018 according to the Miller Samuel/Elliman Report. This is despite a very strong economy and high consumer confidence.
1) Average price per sqft for a Manhattan condo was at $1,913, down 5.3 percent compared to a year ago. Median sales price was at $1.61 million, also down 5.3 percent. Sales volume was down 11 percent.
2) The weakness is driven by three factors: Rising mortgage rates, Uncertainty about the global trade wars, Scale-back in home purchase due to changes in the federal tax law. The current 30 year mortgage rate is up about 1 percent compared to a year ago.
3) Meanwhile, the economy is doing very well. New York City’s jobs increased by 20 percent since 2009 and unemployment is at a low 4.1 percent. The stock market was up 16 percent in the past year with companies’ overall market cap increasing by $3 trillion. Consumer confidence is near an 18 year high.