After a robust first quarter in Brooklyn-Manhattan sales, transactions have dropped considerably in April and May. In order to move properties, prices have come down as much as 10%. This follows a 10%-15% drop in 2018.
- I have a buyer whose offer of $1,850,000 was accepted for a large Chelsea 1-bedroom condo on the 5th floor. The same unit two floors lower sold for $2,050,000 18 months ago.
- I have sellers whose Clinton Hill (Brooklyn) townhouse is now worth less than the $2,300,000 they were offered in Fall after they have put $200,000 into renovations. Thus putting them out $300,000-$400,000.
The hard reality of substantially federal income higher taxes in blue states as well as buyer anxiety from an unstable executive branch of government has created an artificial collapse of New York City real estate. Technically we are in the best economy in 50 years but no one is optimistic. Buyers feel as if they are in a politically unstable third world county.