Manhattan real estate sales and prices fell in the fourth quarter -- total sales volume decreased by 12 percent compared to the previous year's fourth quarter. The average sales price dropped below $2 million for the first time in almost two years.
Analysts say that sales may rebound slightly in the first quarter of 2018, however, the newly-passed tax law limiting the the deductibility of state and local taxes will continue to add pressure to New York City housing prices, per CNBC. "There will be an impact on prices and sales," said Jonathan Miller, president and CEO of appraisal firm Miller Samuel, adding, "it may take up to a year and a half to two years to see the full impact."
The high end of the Manhattan market is showing the biggest cracks. Inventory of luxury apartments — those in the top 10 percent by price — grew by 15 percent. There is now a 17-month supply of luxury apartments in Manhattan, up from 10 months a year ago. And with giant new condo towers sprouting up in every corner of the city, those numbers are likely to grow.
