Its Tuesday, so its that time of the week to provide my Three Cents Worth as a post for Curbed. This week I eat all of Manhattan, taking solace in the fact that the surge in the number of sale ate away inventory levels that had been a problem last year.
To view post: Three Cents Worth: Manhattan Eats Out
Previous posts can be found here.
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johnathan,
Is this trend going to spread inwards toward manhattan.
Bloomberg reports from New York. “Luxury home prices slid in New York’s Long Island and Queens in the first quarter as more property came onto the market and took longer to sell, appraiser Miller Samuel Inc. and broker Prudential Douglas Elliman Real Estate said. The median sales price fell 5.3 percent to $900,000 from a year earlier and houses took 25 percent more time to lure a buyer, the companies said today in a report.”
“An oversupply of expensive houses for sale is reducing demand, said Jonathan Miller, president of Miller Samuel. ‘You’re just not seeing the demand level that you had been seeing in prior years,’ Miller said. ‘You just reached a saturation point to what the economy could support.’”
“The median sale price of a condominium dropped 4 percent to $240,000, Miller Samuel and Prudential said. The weakness at the high end also hurt the overall housing market on Long Island, and in Queens, a borough of New York City.”
“Sales fell 6.4 percent to 7,001 from a year ago and the median sales price slipped less than 1 percent to $437,500. The number of homes for sale jumped 18 percent to 31,954.”
“‘Inventory levels today are double what they were two years ago,’ Miller said. ‘It’s a real issue. What that’s going to do is temper any price appreciation going into the spring market.’”
First the distant suburbs in Jersey and Long Island turn down, now the edges of the boroughs start showing cracks. You can see where this is heading, but somehow Manhattanites are still in denial. People are still snapping up crappy apartments in condo towers that are rising on every corner.
With all the feverish building going on, and signs of a slowdown in the financial businesses, Manhattan might get hammered worst of all when the correction finally arrives here.
I’m not sure I understand your comment on the curbed site. You think that inventory will bounce back to mid-06 levels why? Could you elucidate? I’m not being argumentative, just confused. I’m in the market now (as a buyer) and I would love a little more detail.
Thanks in advance.