Manhattan Real Estate Market Showing Deep Signs of Weakness, New Report Says

New listings are at record highs, but the number of sales is plunging and those who do sell are discounting deeply

Lots of people are trying to sell their apartments in Manhattan - but they had better be prepared to slash their asking prices to do it, a new report released Wednesday suggests.

A record 2,174 new listings came to market in Manhattan in July, up 87 percent over last year, StreetEasy said in its monthly market report.

But even as inventory surged, 37 percent fewer Manhattan homes went into contract in July than a year ago. And for those that did sell, the gap between asking price and closing price (in percentage terms) was the largest StreetEasy has ever recorded.

“COVID-19 has exacerbated the weakness in the Manhattan sales market. If the sellers that have returned to the market are serious about making a sale, they will have to lower their prices accordingly,” StreetEasy economist Nancy Wu said in a statement.

Wu said few sellers were offering discounts yet, but those actually selling their homes are getting well below the asking price.

The firm's sale price index for Manhattan fell to a six-year low in July, though rentals held up slightly better, falling to a two-year low.

By neighborhood, the Upper West Side, Gramercy Park and the Lower East Side were hardest hit, in terms of declines in the median asking price.

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