Manhattan apartment prices have been on the rise, but as more sellers look to cash out, the number of buyers is dwindling.
According to Bloomberg and other media outlets, N.Y.C. real estate buyers just aren't approaching the market with "the same intensity" they had years ago. Much of the data being cited comes from a recent report via Douglas Elliman and appraisal firm Miller Samuel Inc. In it, they warn that apartment sales in some of America’s largest metropolitan areas, especially New York, are way down and those with properties on the market are having a tougher time selling.
The main takeaway is that apartment sales are down almost 20 percent. Douglas Elliman, considered N.Y.C.'s largest residential real estate brokerage, indicated that the decrease comes amid a surge in inventory as the number of new residential buildings spikes.
The Wall Street Journal reported that the trend is not exclusive to New York City, but rather is noticeable across all major cities — including San Francisco. ZeroHedge.com went as far as saying the market was " in free fall." The blame, observers note, can be put on urbanites refusing to sell below current market prices.
Apartment rents will continue to decline across the country's priciest cities, sparking an end of "a six-year boom for the U.S. rental market." This got us thinking about various other aspects of the real estate market and what New Yorkers should know as they head further into the next quarter:
- Negotiability is on the rise for Manhattan apartments for sale, but just 0.7 percent in 3Q ( Elliman and Fortune).
- Re-sales have fallen year over year (YoY) in each of the last four quarters at an increasing rate.
- New development inventory surged 27.2 percent to 973 respectively from same period a year ago.
- Condo sales declined 20.1 percent YoY while condo inventory rose over 15 percent.
- Rent prices are down 0.19 percent in New York, according to Axiometrics, a provider of apartment and student housing market intelligence.
- For those worried about a rent hike, the Association for Neighborhood and Housing Development released a building-by-building interactive map that can show which affordable apartments may be threatened (ht The New York Times).
- SpareRoom.com, a website that helps people find rooms and roommates, announced that CEO Rupert Hunt is searching for two roommates to share his luxury apartment for just one dollar a month.