|Manhattan’s challenging real estate market welcomed reassuring news in Second Quarter 2019. Market-wide sales increased year-over-year for the first time in two years, up 5% annually to over 3,300 sales totaling $7 billion, about $1 billion more sold than last year.
However, this information can be misleading as this increase in closed sales is due to two main reasons:
- New Development Closings– Q2 sales mainly increased due to an 82% spike in new development closings.
- Mansion Tax (took effect July 1st)- Buyers rushed to close before the new July 1st Mansion taxes took effect.
Although closed sales increased, inventory also increased versus Q1 2019, up 20%. For the first time since 2011, active listing have exceeded 8,000 units.
Key Takeaway: An all time high surplus of inventory means that competitive pricing matters more than ever.