Manhattan is well known for its large luxury residential real estate market, but in July, prices fell in the sector fell for the 10th consecutive month, reports MartketWatch staffer Andrea Lopez Cruzado.
Krishna Rao, an economist at StreetEasy, says the trend marks “a point of over-saturation.” The real estate data provider’s most recent report on the city also showed homes across the board in Manhattan are taking longer to change hands and sellers are receiving a median of 97.7% of their original asking prices.
According to Olshan Realty’s weekly market snapshot, the average discount from original asking price to last asking price for properties sold at $4 million and above in Manhattan was 14% last week.
Jonathan Miller of real estate appraisal and consultancy firm Miller Samuel Inc. said that Manhattan luxury sellers are coming to the realization that they need to price their properties according to the new market condition, which is weaker than a few years ago.
“In a market segment where price trends are somewhere between flat and declining, an overpriced listing, by definition, will not sell,” Miller said.