Real estate sales in Manhattan reached their lowest level in over six years, as buyers shy away from the market due to tax law, stock market swings, and an excess of overpriced luxury condos. Sales dropped 25% in the first quarter, according to a report from Douglas Elliman and Miller Samuel. CNBC’s Robert Frank reports:

Jonathan Miller, president of Miller Samuel, said the uncertainty over the new federal tax law — which prevents residents in high-tax states like New York from deducting their state and local taxes — weighed on the market. In addition, closings at new condo towers have largely dried up, making the decline look even steeper. Add to that the recent swoons in the stock market, which New Yorkers watch closely, and you have buyers who are increasingly deciding to sit on the sidelines.

The high-end market segment was hit the hardest in the first quarter, CNBC reports, as luxury apartment prices fell 15% and sales were down 24% from last year. Luxury apartments sit on the market for a year and a half, on average, and CNBC says sellers have yet to lower their prices in keeping with the new tax law and market slowdown.

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