As usual, the $4 million+ housing market in Manhattan stands strong—thanks in part to the record-setting $88 million dollar purchase a few months ago—but the rest of Manhattan continues to slump.
“For the first time since the recovery, the U.S. is growing at a quicker pace than New York City,” Greg Heym, an economist at Brown Harris Stevens and Halstead, told the Journal.
Reports from the Department of Finance yielded troubling results to the housing market, further noted by the Journal:
The analysis for the year so far showed that sales of apartments selling for less than $1 million, the largest segment of the market, fell by the most, 7.9% overall, including a steep 14.9% decline in sales of co-ops at that price point.
At the same time, sales at the top end of the market, for apartments selling for $4 million or more, rose by 15.6%, as brokers reported a continuing influx of foreign buyers and strong sales in new condominiums.
Despite the clear drop, real estate firms remain optimistic:
Diane Ramirez, the president of Halstead Property, said: “It is a good, lively, active market across the board.”
Jonathan Miller, an appraiser and president of Miller Samuel Inc., who prepared market reports for Prudential Douglas Elliman, said the sluggish figures reflect the fact that “people just held back” toward the end of last year because of economic uncertainty.
It just might be best to look at the glass half-full!
Though, the housing market isn’t the only industry affected. The MTA takes a few blows on economic downturns.