Manhattan home prices are in "near free fall" as the median falls below $ 1 million
The average sale price of a Manhattan home dipped below $ 1 million over the past three months amid the imposition of new high-end property taxes, according to a market analysis released on Wednesday.
The median price of $ 999,950 represented a 17% decline over the same period last year, CORE Real Estate said.
The number of apartment sales also fell by 8%, to 946, and the largest units – with four or more bedrooms – were the largest bargains, with both median and average prices down by 20%, CORE said.
"The third quarter of 2019 was undoubtedly the most challenging quarter in recent memory, especially for apartment sales," said Garrett Derderian, CORE's chief marketing officer. [1[ads1]9659002] “Market prices have gone from what was once described as the kindest, gentlest correction to an almost free fall. The last time conditions were described in such a way was at the height of the recession. "
Appraiser Jonathan Miller, who prepared a quarterly market analysis for Douglas Elliman Real Estate, said his data showed the median sale price for a Manhattan townhouse fell a staggering 45.8% to $ 3.5 million.
In addition, only 36 agreements were closed, down 33.3% from last year's third quarter.
"The story is that prices are down and inventory is up," he said.
1. In July, the 1% "tax rate" on city homes selling for a million dollars or more was replaced by a series of prices that ranged as high as 4.15% according to state budget 2019-2020 by Prime Minister Andrew Cuomo.
The state transfer tax on residential property selling for more than $ 3 million also rose from 0.4 to 0.65%.
These hits came at the top of the $ 10,000 federal and state tax (SALT) deduction limit that went into effect last year.
"The SALT tax [cap] was incredibly damaging to the market, and the extra sovereignty and transfer tax has also caused people to pause," said Pam Liebman, president and CEO of the Corcoran Group brokerage. [19659002Liebmanalsosaidthethird-quarterfigurewasartificiallyemptiedbecause"weboughtsomuchadvancehometaxinJune"
"I don't think anyone has to worry about this being a cataclysmic event," she said. Broker Dolly Lenz agreed to say, "Everyone who planned to buy already bought."
"But people wondering about the tax of the estate should calm down. It will be baked into costs in a few months, "she added.
