NEW YORK CITY—Halstead Property's Q2 2018 Manhattan apartment report is out. It shows the median Manhattan apartment price of $1.1 million decreased from $1.2 million from the same quarter last year. There were also 12% fewer closings compared to this same period year-over-year. Median prices fell for the fourth straight quarter with resale apartments selling with their highest discounts off asking price in more than five years.
Halstead president Richard Grossman says this reflects the issue of affordability for the buyer, and people saw this trend coming. “We know there are two things that are affecting prices right now: the higher interest rates and the loss for certain buyers of some of the tax benefits of buying.”
In June, the Federal Reserve raised interest rates for the second time this year, by a quarter of a percentage point. Mortgage interest rates have been climbing. Grossman notes last year mortgage interest rates were about 3 1/2% and this year are around 4 1/2%.
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Betsy Kim
Betsy Kim was the bureau chief, East Coast, and New York City reporter for Real Estate Forum and GlobeSt.com. As a lawyer and journalist, Betsy has worked as the director of editorial and content for LexisNexis Lawyers.com, a TV/multi-media journalist for NBC and CBS affiliated TV stations in the Midwest, and an associate producer at Court TV.
