October 4, 2016

SHARKS GOTTA SWIM, BATS GOTTA FLY, BUBBLES GOTTA POP: Manhattan Apartment Sales Plunge Almost 20 Percent.

After the financial crisis, developers rushed to build luxury apartment towers with outsize apartments priced at $10 million or more. Now that they’re coming online, many are sitting unsold.

The overseas rich are no longer buying like they were a year ago, as China’s economy slows, oil prices hurt Russia and the Middle East, and Latin America suffers recessions. Meanwhile, American buyers are nervous about the November elections and the unsteady stock market.

There is an excess supply of apartments priced at more than $5 million “and more supply continues to come onto the market,” Miller said.

The supply of new development is rising three times as fast as existing apartment inventory, he said. Listing inventory of new development jumped 27 percent compared with last year, and the absorption rate increased 36 percent to an eight-month supply.

Miller Samuel CEO Jonathan Miller says the market is settling down to “something more sustainable,” but those numbers in the last graf tell a different story.

InstaPundit is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon.com.