Simple supply-demand economics tells us that where there is excess supply, price drops. And that is exactly what’s happening in Manhattan with the home sales market.
As @OshratCarmiel reports for @Bloomberg: “Manhattan Home Sales Tumble in a Market Clogged With Listings” Will people start to see that now might be the chance to: Rent Your Way To Freedom!
Supply of homes on the market in Manhattan is edging back to previous 2011 highs experienced in the wake of the Lehman Brothers financial meltdown. That increase of supply means it’s becoming a buyer’s market.
That’s the potentially good news, if you’re buyer.
But, if your seller, the market shows that prices at the median have come off “4.5 percent from a year earlier”.
Putting a 4.5% drop in perspective, that is about 45% of 10% down payment and/or giving back about 18 months of previous appreciation.
If you’re in housing for the long hull none of this may much matter. But, if you’re needing to sell…difficult times could be looming.
Ah, with the glut of housing options coming available, maybe now is a good time to buy…?