Manhattan Condos Price Drop Biggest in Nearly 3 Years, Report Says

Manhattan condos price drop, the biggest in nearly 3 years

According to a report published by StreetEasy, Condominium prices have dropped by 1.4 percent from March to April. Although this doesn’t look like a huge decline, this is the greatest monthly decline in 3 years.

This might signal that the prices might have reached their peak and are likely to continue decreasing, or at least remain the same in the coming years. And the website also predicts that there will be a slight decline of 0.3% in the month of June. However, the prices still rose to 10.7% from the year before.

Condo prices have dropped by 1.4 percent from March to April

So, what is the cause of the price decline?

According to the website, the decline is caused by the gradual increase in the number of condos being sold. The website says Manhattan condo inventory increased 2.7% from the month of April, the 5th month in a row that the condo inventory increased.

Consequently, there was an increase in the number of condos sold in the month of May (at about 9.6% increase from April) because of the increase in inventory and reduction in prices. However, time on the market remained unchanged at 49%.

Does it mean the Manhattan condos have become affordable?

But according to StreetEasy data analyst, Alan Lightfeldt, this does not in any way mean that the condo market has suddenly become cheaper for most buyers. On the contrary, prospective buyers are still reeling the high prices of condos which reached their peak in 2013—the median sale price of a Condo in April was 1.3 Million.

According to Capital New York, some would-be buyers are still searching for cheaper condos that are not in the market. Majority of the searches were for condos priced up to $500,000 or up to $600,000. So, this spring marks a welcome start, not a destination.

Although sellers may still have the upper hand in the property market, buyers may be gaining some powers in bringing prices back lower. Sellers will have to be forced to lower their prices if they want to sell more.

Carl Richards

You're moving to the big city, but are you ready? Navigate the real estate market my tips and features.

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