The New York City real estate market faced the biggest drop since 2015 this year, and Million Dollar Listing brokers are feeling the pressure. The 2019 market decrease in NYC is forcing the brokers to amp up their creativity.
As inventory increased by 11.7 percent between 2018 and 2019, one in 10 home sellers cut their prices in Manhattan. The Street Easy Manhattan Price Index dropped by 4.3 percent, or $1,119,183 in February 2019. That was the biggest decrease since July 2015, according to Street Easy.
The pressure was on in the Season 8 premiere of Million Dollar Listing New York. On episode 1, Ryan Serhant took on the challenge of selling an immaculately decorated, five-floor townhouse with 41 windows and doors, a private parking spot and a view. There was just one problem – the noise. The Brooklyn Queens Expressway runs right by the lavish townhouse. The sellers reluctantly agreed to drop their price from their 2016 list price of $14 million to $9 million. Even with the 35 percent price decrease, Serhant had to find a way to distract from the noise during his opening.
Here’s what you need to know:
The Manhattan Price Index Dropped to its Lowest Rate in Four Years & 10 Percent of Buyers Dropped Prices
The sellers on the Season 8 premiere of Million Dollar Listing New York aren’t alone in their plight to drop prices. Eleven percent of sellers in the Manhattan real estate market cut their prices as homes on the market increased by 11.7 percent. In February 2019, the Street Easy Manhattan Price Index decreased to its lowest level since July 2015. The index dropped by $1,119,183, or 4.3 percent, according to Street Easy.
Even with reduced prices, real estate is staying on the market longer. The median length of time for Manhattan homes to remain up for sale was 117 days, the longest length of time in seven years. The trend was the same regardless of price point, and hit downtown Manhattan the hardest. Downtown Manhattan faced an increase of 31 days on the market from 2018 to 2019, Street Easy reported.
Prices remained about the same in Brooklyn, and inventory increased by 21.9 percent. Homes took an average of two weeks longer to sell in Brooklyn, but Prospect Park buyers had listings stay on the market for two months longer than last year. East Brooklyn faced a spike in price cuts with a 5.7 percentage point increase, up to 11.8 percent. Homes sold the fastest in Queens, with a median of 67 days on the market, or one day less than last year, according to Street Easy.
Million Dollar Listing Brokers Are Getting More Creative to Balance the NYC Real Estate Market Drop
Million Dollar Listing New York Season 8 opened with brokers losing sales and Ryan Serhant watching a financial TV show.
“Today is gonna suck,” he said.
“I’ve been sitting in this chair for about eight years,” Fredrik Eklund said in a confessional. “And the markets been going up, up, up, up. And all of us real estate agents have been spoiled globally. Now, everything is so hard.”
Broker Steve Gold talked about losses with Serhant.
“This is no joke,” Serhant said in a confessional interview. “Homes over $4 million have an average days-on-market of 450 days. It has never been that way.”
He convinced sellers to list their five-story townhouse for $9 million, despite their $9 investment into the home. Then, Serhant had to find a way to detract from the noise of the Brooklyn Queens Expressway. He brought in a band and drum line.
Long-Term Projections for the NYC Real Estate Market are Promising
There’s still good news for New York City sellers, and the brokers on Million Dollar Listing. Despite the real estate market decrease, long-term projections are good.
The real estate market slump in the fourth quarter of 2018 led to a restored balance in the market during the first quarter of 2019. As sellers dropped their prices, buyers saw an opportunity to buy, according to Forbes.