The once thriving real estate market in New York’s prestigious Manhattan district has experienced a heavy blow in the last three months. Sales have gone down by 50% and prices have continued to sink, leaving owners little hope to sell their apartments for a nice profit.
Jonathan Miller, CEO of real estate appraiser Miller Samuel, stated: “Sales were off by 50% because of the weak economy, rising unemployment and, most important, the credit crunch.”
Halstead property, another real estate firm reported that since last year prices for an average Manhattan apartment have fallen by 24% to around $1.26 million. The company also pointed out that the median price for apartments in the district were at a low $795,000. This is the lowest it’s been since the second quarter of 2007, having dropped 19% from the previous year alone.
These hard facts are clearly indicative of the larger problem that exists nationwide. The biggest drops were seen in the luxury market which has been accredited to a certain degree by the pay cut of many Wall Street employees and the lack of available loans from banks and lenders.
CEO of PropertyShark.com, Bill Staniford said: “There was a lot of wealth that we’re not seeing anymore.”
On the opposite side of the spectrum price cuts weren’t as vindictive at the lower end of the market. Loans were more readily available for that level which has resulted in a better market in comparison. Despite the negative events in the real estate market some agents report positive signs that promise a recuperation in the not so distant future.
Corcoran CEO Pamela Liebman said prices have slumped, but deal activity is increasing. She said: “The stalemate is over buyers have returned.” Liebman also said that closings rose between 10% to 15% compared to the first quarter this year which is a good indication that buyers were indeed back in the game.
Halstead’s President reported similar findings as well. She stated: “I am seeing a light at the end of the tunnel.”
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