There’s simply no way to sugarcoat the data, although to be frank several NYC real estate firms are trying to do just that.
Manhattan real estate is in deep trouble, as trouble from Wall Street seeps upstairs into the co-op and condo markets. Some firms are giving a total picture of all sales, and claiming that it’s not so bad, but Prudential Douglas Ellimandoes a really good job of breaking down and breaking out the sales of condo vs. co-op and re-sales vs. sales of new developments.
Right now far fewer co-ops are selling than condos, which is not the norm; co-ops make up 75 percent of the Manhattan market. Co-op sales are down 58 percent just in the last quarter and prices (median) down 21.7 percent year over year. Condo sales are also down, but prices show an increase of 5.8 percent. Why? Because the bulk of these condo sales are in new developments, where the deals were made 12 to 18 months ago.
Now, as goes Manhattan, so go the Hamptons.
“You’re already seeing it in the rental market where you’re seeing a reluctance of people to do seasonal rentals,” notes Jonathan Miller of Miller Samuel, a real estate appraisal and consulting firm. “So I would expect to see a lower level of sales activity and commensurate price cuts.”
That doesn’t bode well for two of the “Real Housewives of NYC.”
According to Page Six (my fave), the Countess Luann de Lesseps, who is leaving her Count hubby after learning of his love affair with an Ethiopian woman in Geneva (I saw that coming a mile away), is putting her four-bedroom Bridgehampton home on the market for $9.5 million.
Right behind her is “Housewife” Kelly Bensimon(the new chick), who is putting her Further Lane cottage on the market for $10.9 million.
Good luck ladies.
Today’s New York real estate market doesn’t get much more real.
Questions? Comments? RealtyCheck@cnbc.com