Prices of Manhattan apartments fell during the second quarter, as did the number of sales, with buyers lacking the urgency to purchase property.
Purchases were down 3.8% compared with the same period last year, to just 2,650, according to a report by New York appraiser, Miller Samuel Inc. and brokers Prudential Douglas Elliman Real Estate. The median price of condominiums and co-ops has fallen by 5.5% to $850,000.
This effect is at least partially due to the lack of any federal tax credit, as last year buyers were in a hurry to close deals before June 30th, which is when the federal tax credit expired. This credit was worth up to $8,000, and it artificially inflated sale prices and volumes.
Apparently these sales prices and volumes for the second quarter are about average, and are what could have reasonably been expected last year had there not been any tax credit available.
Real estate experts think that people are still adopting a wait and see approach, and are in no hurry to commit to buying property.
The unemployment rate in New York is currently at a 25 month low, at 8.6% in May, which is 1% less than a year ago. The financial industry in New York registered a gain of 10,400 jobs from May 2010 to May 2011.
Property in Manhattan is now on the market for an average of 136 days, which is 30% longer than a year ago. However listing discounts dropped from 9.1% to 3.5%, according to Miller Samuel and Prudential, indicating a stable rather than booming market.
Prices of luxury apartments increased by up to 11% year on year, while prices of new apartments declined by an average of 19%.