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

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%.

This post was published at Zero Hedge on Jan 13, 2017.