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New York City is experiencing a mass exodus, as many relocate to suburbs in the tristate area or down to Florida to escape the likelihood of rising taxes to make up for large economic losses suffered during the coronavirus pandemic. The city is also facing a rising unemployment rate, and only about 10% of corporate employees have returned to their offices from remote work.
There are about 10,000 apartments currently for sale in Manhattan, according to data from the real-estate company Compass. New listings have continued to flood the market, but there’s a shortage of buyers and the current number of apartments for sale would take about three years to sell, according to a report from Miller Samuel and Douglas Elliman.
Despite real estate brokers touting a “buyers’ market” for months, the average sale price of apartments in Manhattan has actually increased in the third quarter by 32% to $2.18 million. The median sale price increased by 7% to $1.1 million.
This may be attributed to statistical flukes, according to analysts who pointed to depressed market activity in the third quarter of 2019 due to the city’s new mansion tax, as well as a series of high-priced deals negotiated years ago closing recently for the new luxury condominium tower 20 Central Park South.
Only 1,375 sales went through in the third quarter, marking a 44% drop from the same time last year. Signed contacts for September also dropped by 42% in Manhattan from last year.
Miller said he does not anticipate an improvement in the market in the fourth quarter, but there could be an increase in sales by 2021 depending on quality-of-life issues like policing, sanitation and public transportation.