(NEW YORK, NY) — The median sale price of an apartment in Manhattan has fallen below $1 million for the first time in three years. The price dropped 5.8% to $999,000, according to a report from Douglas Elliman and Miller Samuel.
The report shows that the decline is sales in the fourth quarter marks the fifth consecutive year-over-year quarterly sales decline.
The median sales price of new developments also saw a 25.5% drop compared to the same time last year. Highest-priced apartments are not selling as fast as they used to. And, with prices continuing to shoot up, many buyers are holding onto checks until prices adjust to a more reasonable level.
By the end of the fourth quarter, there were 7,000 active listings in Manhattan, a 10 percent increase from the same time last year.
There are a few explanations for the glut of luxury apartments: there are fewer foreign buyers from China and Russia, an oversupply of new luxury towers, rising mortgage interest rates, political uncertainties, and volatile stock markets.
The report predicts that 2019 is unlikely to see improvements. However, price drops will not be as severe as 2018.