New York Real Estate Prices Plunge In 4Q As Listing Days and Discounts Soar

Tyler Durden's picture

After reviewing the Elliman Report on the New York City Real Estate market at the end of 3Q 2016, we concluded that sellers had simply refused to accept the fact that the Manhattan real estate bubble had burst and rather than dropping prices had decided to simply let their apartments sit on the market unsold while hoping for a miracle.  Here was our conclusion (see "NYC Real Estate Bubble Bursts As Apartment Sales Crash 20%"):

In conclusion, the lesson seems to be that the marginal New York City buyer has been priced out of the market (volume down 20%) while sellers have not yet accepted that the bubble has burst deciding instead to maintain listing prices while letting their apartments sit on the market longer amid growing inventory levels.  Meanwhile, the luxury market is the only segment that seems to be holding up which only serves to prove that Chinese billionaires still have cash they would like to hide in the U.S.

Alas, with the release of Elliman's 4Q 2016 report, it has become apparent that that miracle never materialized for New York's hedgies and i-bankers.  In fact, the data from Manhattan real estate sales was almost universally bad with median pricing down 8.7% YoY, volume down 3.7%, listing days up 14.6% and discounts up to 5.5%.

NYC Real Estate

 

Meanwhile, a view of the longer term sales and pricing trends for Manhattan seems to suggest that the 2013-2015 expansionary period has officially turned.

NYC Real Estate

 

As was the case last quarter, the re-sale market was among the hardest hit segments with median prices down 6.3% YoY and volume down 1.5%. 

NYC Real Estate

 

Also like previous quarters, the luxury market, despite sinking volumes, is the only segment to continue to show growth in median sales prices.

NYC Real Estate

 

And while buyers are abandoning Manhattan en masse, Brooklyn seems to be the key beneficiary with purchases there soaring 22% YoY and median prices climbing 15%.  Per Bloomberg:

Home buyers in Brooklyn competed for a record-low number of listings in the fourth quarter, driving up prices in the New York borough that’s historically been seen as a refuge from Manhattan’s high costs.

 

Purchases in Brooklyn rose 22 percent from a year earlier to 2,582, while the median price of those deals climbed 15 percent to a record $750,000, according to a report Thursday by appraiser Miller Samuel Inc. and brokerage Douglas Elliman Real Estate. The number of homes for sale at the end of December tumbled 31 percent to 2,232, the fewest since the firms started keeping the data in 2008.

 

The sales market in Brooklyn, the city’s most populous borough, is moving in the opposite direction to Manhattan’s, where rising supply is offering buyers more choices and the option to walk away from listings they view as overpriced. Manhattan’s median home price dropped 8.7 percent in the fourth quarter to $1.05 million as sellers awakened to a slowdown after years of holding out for all they could get, the firms said last week.

 

“You have a disconnect with sellers in Manhattan, and Brooklyn is poaching some of that demand,” Jonathan Miller, president of Miller Samuel, said in an interview. “Overall, it’s generally a lower price point, and affordability has been a big issue the last couple of years.”

NYC Real Estate

 

Seems that "Bridge & Tunnel" is starting to have a nice ring to it.

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LetThemEatRand's picture

After several years of refusing to play in the market, I plunked down a few chips on DRV yesterday.  I'm still waiting for the free drinks.

barndoor's picture

Jade Helm 2.0.  I've been in a coma for 1.5 years.  I assume Texas has already been taken....

barndoor's picture

OBUMMER is a FAG!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

enfield0916's picture

Helllo from Texas, Hedgeless Horseman and I are still here and this state can NEVER be taken over. Texas has more guns than the entire Libtard states combined!

Don't let the Joo World Order stooge Alex Jokes tell you otherwise.

On a secondary note- respect to the Hedgeless Horseman for being steadfast and sticking to Libertarian principles!

curbjob's picture

 get a room ...  it doesn't have to be in Manhattan. 

MASTER OF UNIVERSE's picture

The Stats are interesting, but I don't believe them, or the spin. New York shitty Commercial Real Estate must have tanked proportionally to all the other states in my estimation. Moreover, China is likely buying in too, but no mention in the article.

Hulk's picture

Nothing like buying at the top and then being stuck with those property taxes for years and years...

Yen Cross's picture

    Ya gotta love "indentured servitude".

   Libtards ran the slave trade.

barndoor's picture

Jade Helm 2.0.  I've been in a coma for 1.5 years.  I assume Texas has already been taken....

barndoor's picture

YES, VERY LOL!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

naro's picture

Just got to call yourself Imam, Rabbi or Pastor, and declare your condo a place of worship--and you are tax free

mgbkurtz's picture

Any Hoboken stats?  Zillow's "temperature" on Hoboken has dropped recently.

Stu Elsample's picture

Your property values are dropping fast, and you will STILL pay those record property taxes in NYC to keep the 3rd world trash freeloaders surrounding your property fat and happy.

 

Golden Showers's picture

New York, New Amsterdam, who cares?

Let the UN pay the tax. Fucking Rockefellers and dick shit wimp bitch presidents like that ass hole low life scum fuck Woodrow Wilson from New Jersey.

Y'all get prepped. Get some old man pampers like you need in your stash because you can't plan ahead and worry about the cock sucking gold price.

LN's picture

It's just hard to sell property in NYC, in that post nuclear winter scenario.

We have marketing all over this, profits will be made.

LN

chosen's picture

A fish rots from the head down.

Stan Smith's picture

The NY (Manhattan specifically) has always been nuts.    I'd call it overheated,  but its not like once prices drop to traditional trajectory 'highs' folks arent going to be jumping back in.

And as mentioned in other posts, and articles, you dont just have locals buying.   You have internationals as well with wealthy Euros and Chinese folks plopping it down as well.   Maybe its cooling,  but its still Manhattan.   There's few markets like it in the USA.   Thankfully for the rest of us.

Rikky's picture

Look at pictures from the 1920's and 30's and you'll see Manhattan looks like a ghost town.  That's because it was as the only people who could afford to live there were the uber wealthy.  It's slowly getting back to that with of course the subsidized poor.  Everyone else is a visitor.

J bones's picture

Cant help myself but to think about "The Big Short"

GraveDancer's picture

WW3 Update --- India prepares to invade Pakistan.

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"If Peace Not Reciprocated, Surgical Strike Can't be Ruled Out", Army Chief

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TheVoicesInYourHead's picture

But, this time is different.

ThrowAwayYourTV's picture

Who would want to live in that shit hole anyway?

smrstars's picture

Cue the ZERO down 0% mortgages for life

Rikky's picture

I lived in NYC for 10 years on the Upper West Side.  I watched everything from the neighborhood, to crime, to overcrowding to homelessness spiral downwards.  Unless ou live in some of the wealthiest enclaves and/or on certain streets the cost of living in NYC and what you get for your $ is pathetic.