Manhattan Apartment Prices Collapse Most In Four Years
Meanwhile, after scrapping a lot of deals in 3Q 2016 due to unrealistic asking prices, Jonathan Miller, of brokerage Miller Samuel, told Bloomberg that sellers are slowly coming to terms with the reality that prices need to come down if they actually want to sell their apartments rather than just pretend.
“Maybe we’re heading out of the period when there was no shame in overpricing your home,” Jonathan Miller, president of Miller Samuel, said in an interview. “We’re moving away from that and into something more pragmatic: Do you want to actually sell your property or do you want to pretend? Part of selling is pricing correctly or being more negotiable.”
Buyers agreed to pay more than the asking price in just 13 percent of all sales that closed in the quarter, down from 29 percent a year earlier, the firms said. They also are taking longer to make a decision: Previously owned properties that sold in the period spent an average of 80 days on the market, up from 71 days a year earlier. Manhattan resale deals totaled 2,385, a decline of 1.5 percent.
"We saw buyers acting a lot more aggressively with their bidding,” said Pamela Liebman, chief executive officer of brokerage Corcoran Group, which released its own report Wednesday that showed a decrease in sales for the quarter. “They didn’t hesitate to come in and make low offers. A lot of sellers remained unrealistic throughout the year, and that killed a lot of deals."
With the floodgates open, the only question now is how low will prices have to drop to clear the massive inventory overhang on the New York market? Once fear grips that market, the race to the bottom can be quick and painful.