It’s not a secret that the New York real estate market has shown striking similarities to the global art market. No one really has a good explanation for why it might be and whether the similarities are merely correlation without an underlying causation.
This commentary published in The New York Times makes the point once again. It also goes on to remark upon the health of the market below the very top and the middle of the top. (You can interpret that in any way that works for you.) Here’s the Times:
The housing market in New York is not what it was a year ago. Gone are the days when you could list your apartment for 20 percent more than the last comparable sale and watch the offers roll in over the next couple of days. “This has been the story for 2016,” said Jonathan J. Miller, the president of the real estate appraisal firm Miller Samuel. “The market has largely reset.”
While 2015 was a tale of sparse inventory sparking crazed bidding wars, 2016 has taken it down a notch. More apartments are on the market, and they take longer to sell. The market has softened, particularly at the top. So for those of you trying to unload a $65 million spread, now is the time to lower your expectations. The lower end of the Manhattan market, with apartments priced around $500,000, is still tight, as those homes are in high demand. Your $2 million two-bedroom falls somewhere in the upper middle of the market.
Is the Market for New York Apartments Softening? (NYTimes.com)