Prices are falling on the most expensive homes in Manhattan.
As of October, the median price of the top 20% of the Manhattan real estate market reached $3.59 million, a 2.2% decline from the year before, Bloomberg reports. Prices reached their peak the previous February with a record high of $3.72 million and proceeded to fall each following month.
The number of luxury home listings in the New York City borough grew to 4,055 in the third quarter of 2015, an 8.9% increase. In that same time period, the rest of the market saw listings shrink by more than 3%, and prices for those homes have been on the incline.
Alan Lightfeldt, an analyst at StreetEasy, told Bloomberg that the top fifth of the market “has been over-served and the demand seems to be fully satiated.”
Demand has also gone down in response to various external factors including the euro weakening against the U.S. dollar, the Chinese stock market’s instability, and a bad year for hedge funds.
“You take all of those factors and you sprinkle them onto a real estate market that was overpriced to begin with, and you’re going to feel it,” Donna Olshan, president of Olshan Realty, told Bloomberg.