Despite reports of record real estate transactions and skyrocketing prices, luxury home resale prices in Manhattan declined for the seventh month in a row in April amid a slowdown in the overall market, says a new market report.
The median resale price for homes priced above $3.31 million has declined every month since October 2015, when they peaked at $3.34 million, according to data released Friday by StreetEasy.
“The luxury market in Manhattan is currently experiencing a correction: an oversupply of units coupled with waning global demand is pushing prices lower,” Alan Lightfeldt, a data scientist at StreetEasy, told Mansion Global.
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Price declines in the high-end market—apartments that cost above $1 million—tracked by the real estate portal are seen by the firm as a possible indicator of a much larger slowdown across the full market and regardless of the fact that lower-priced homes are still rising.
Manhattan’s median resale price rose to $975,017 in April, an increase of 2.9% from a year before, but the lowest annual growth since February 2010, according to StreetEasy’s report.
“The fact that Manhattan’s overall price growth continues is due entirely to strong competition and growth at the lower end of the market,” explained Lightfeldt.
While the number of homes priced above $1.05 million remained flat in April from the same month in 2015, the number of available properties below that price fell 26%, according to data by StreetEasy.
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StreetEasy expects the steady deceleration of price growth to continue through the next year, particularly in the luxury segment.
“Until supply and demand for the most expensive homes equalize, we expect price declines to continue,” said Lightfeldt.