Manhattan real estate sales plunge 38%, (but cash deals hit all-time record)

Economy
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Manhattan real estate sales plunge 38%, but cash deals hit all-time record
APR 4 202312:01 AM EDT

  • The drop in sales and prices follows a 29% decline in the fourth quarter, and suggests that the nation’s largest real estate market is correcting after a post-pandemic boom in prices and demand.

Manhattan real estate sales fell 38% in the first quarter, as buyers and sellers battled over prices and mortgage rates remained volatile, according to new reports.

Total sales volume fell to $4.4 billion in the quarter, with 2,242 apartments and townhouses sold, compared to 2,546 sales in the first quarter of 2022, according to a report from Douglas Elliman and Miller Samuel. The average sales price fell 5% to $1.95 million and the median sales price fell 10% to $1.075 million, according to the report.

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The “good” news is whatever price drop suburbanites would have felt in this cycle will be partially offset by urban flight.

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Oh I meant to include

The drop in sales and prices follows a 29% decline in the fourth quarter, . . .

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Sounds like folks trying to dump unoccupied properties. I wonder how many have ARMs and are doing anything to get out of the rising payments.

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Big multi family properties are often purchased on a type of ARM,
More correctly they are purchased on a balloon mortgage.

Formats vary (widely) but m/l typical is:

  • 20% down
  • Rate locked-in for 7 years
  • Rate continues for 20-30 years IF by the end of year 7, you have raised 30% add’l down payment.
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You can get this fixer upper for just $3,900. :smile:

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Who says there aren’t bargains on the market.

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LOL It’s tempting.

but in a lot of cities it works like this:

  • cost of land: $3,900
  • cost of getting permits and studies to build anything: $3,900,000
  • value of finished property: falling like rock
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This is out in the backwoods, just one of tens of thousands examples of such properties.

Actually, it is of a far higher utility to buy such property and obliterate it, removing it from areas where upscale development is occurring.

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Maybe it’s not just Manhattan

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