Oversupply and Other Factors Cause Manhattan Apartment Prices to Tumble

Prices for Manhattan real estate took their biggest plunge since the 2008 financial crisis, according to a new report.

The average sale price for a Manhattan apartment fell 14% in the third quarter, according to a report from Douglas Elliman and Miller Samuel. That was the steepest drop since 2010, when the city was still in the grips of the financial crisis, according to Jonathan Miller, CEO of Miller Samuel, the appraisal and research firm.

The average price of a Manhattan apartment is still not cheap — falling to $1.7 million. But brokers and real estate analysts say there is little sign of a bottom after nearly two years of declines.

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