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Is Manhattan Real Estate the poorest second quarterly performance since the credit crunch?
The Manhattan real estate had its poorest second trimester since the credit crunch, with falling asset values and increasing inventories, a new release says. Manhattan's overall revenues in the second trimester were 17% lower than in the previous year, according to a survey by Douglas Elliman and Miller Samuel Real Estate Appraisers and Consultants.
Total selling consideration decreased by 5 per cent to $2.1 million. will be confronted with greater pressure, from a very large piping of new freehold apartments to a shrinking number of foreign customers, erasable equity exchanges and new fiscal changes that will make New York less appealing. Whilst Manhattan is still a major consumer area, chilling selling suggests that the high levels of 2015 and 2016 must continue to drop to accommodate today's price-conscious shoppers.
"We are seeing the markets adjust to a lower, more long-term levels of activity," said Jonathan Miller, chief executive officer of the valuation company Miller Samuel. The flood of new condominiums under development is one of the greatest challenges, especially in the luxurious sector. Deluxe apartment inventories for resale rose by 10 per cent to their highest levels in a second trimester in seven years.
A 16-month offer of luxurious homes is now available, the magazine reports, and luxurious homes have been on the street for an annual period of more than six month on the average. Uncertainties about the economic situation and the new fiscal legislation are also slowing down unit selling. Fiscal reform will limit government and municipal withholding and make high-tax states like New York less appealing.
Whilst some prognoses say the correction could cut 10 per cent off the value of New York real estate, the crucial implication is still unknown, Miller said. In the event the overseas economic systems slow and the US and other lands crack down on the use of real estate for the laundering or offshore, the proportion of dwellings that are being sold totalling about 40 per cent to outside customers has dropped, Miller said.
This year, too, all these will have a negative impact on our pricing and revenues.