For several years, sellers have been calling the shots but times they are a changing and so are their mindsets. During the first quarter of the year, the number of sales in Manhattan, Brooklyn and Queens jumped 24 percent year-over-year, from 7,365 in 2016 to 9,162 in 2017. And listings discounts — which increased in every sector of the market — helped drive the sales activity.
While price cuts can be painful for sellers especially if they watched the high prices of yesteryears, they can’t ignore cold, hard figures especially for those determined to sell. In 2016, the median price of a Manhattan apartment hit a record $1.2 million, according to CityRealty, but that figure was boosted significantly by closings at ultra-pricey developments like 432 Park Avenue and 150 Charles Street. Last quarter, the median home price in Manhattan fell 3 percent, to $1.1 million, compared to the same period last year. New developments have also not been immune to price reductions. For instance, in January, Extell Development reduced the price of five apartments at its Carlton House by 10 percent.
There is a silver lining to price cuts as they can generate interest in a property and occasionally, price cuts can lead to bidding wars which could push the final price back up.