Manhattan home prices fell in the fourth quarter, with the median slipping to less than $1 million for the first time in three years. Ample inventory continued to allow buyers to demand sweeter deals.
Condo and co-op prices declined to $999,000 in the three months through December, a drop of 5.8% from a year earlier, appraiser Miller Samuel Inc. and brokerage Douglas Elliman Real Estate said in a report Thursday. Many apartments were sold for less than sellers originally sought, with an average discount of 6.2% from the last list price. That’s up from price cuts of 5.4% a year earlier.
It was the first time the median was less than $1 million since the third quarter of 2015, when it was $998,000.
The price decline is largely the result of shoppers having options. The inventory of existing homes on the market was up 17% from a year earlier. That’s given buyers greater negotiating power, and left sellers with no choice but to cut overly optimistic listing prices if they want to move properties.