After years of strong demand and brisk sales, Manhattan home sellers are suddenly finding that escalating prices and tax changes are making it harder to sell a home in the Big Apple.
Purchases have dropped and new listings are starting to pile up, says Bloomberg. Potential buyers may be putting on the breaks, afraid of over-paying in an already pricey market. In fact, median prices are down from a year earlier.
The Takeaway: Real estate prices can be cyclical, but it’s worth paying attention to trends in Manhattan and elsewhere for insights into where the broader U.S. residential real estate market is headed. Rising mortgage rates, changing rules for deducting interest and state/local taxes, and steep home values will all have an impact on home prices in your neighborhood.