New York City apartment price drops by $6.5 million

In just six months, the price of a New York apartment has fallen by $6.5 million, showing that the real estate market may be changing even in one of the most expensive cities in the country.

A four-bedroom apartment at 111 West 57th Street overlooking Central Park is currently going for about $22 million. In June, the home was listed for $28.5 million, down about $6.5 million in just six months, according to data from Pricing Culture’s Processed Webdata provided became Newsweek.

The home features 4,492 square feet, four bedrooms and a Great Room with 14-foot ceilings and floor-to-ceiling windows that overlook Central Park.

The kitchen also offers views of Central Park and the bedrooms offer views of the southern skyline.

The drop in home value may reflect a larger trend, as listings in New York City have declined about 11 percent over the past year.

“We’ve seen a lot of luxury homes sell at somewhat discounted prices,” said Alan Chang, a title and escrow expert Newsweek. “This could be a sign that preferences are changing and space and privacy are being prioritized over a trendy location. For the same amount of money or less, you could purchase an area with a larger and more luxurious home in a safer area and fewer taxes.”

During the COVID-19 pandemic, many wealthy New Yorkers fled the city and settled in other states as remote work became more popular. But as remote work became less popular, prices soon rose again.

“As remote work becomes more of a thing of the past and most large employers in locations like New York ask their employees to return to the office, we saw price increases in 2022 and 2023 for many properties in the city hoping to make a profit. “For some, this is a return to the city,” said Alex Beene, a financial literacy lecturer at the University of Tennessee at Martin Newsweek.

“However, as this window of opportunity quickly disappears, some sellers are recognizing the harsh reality that markups may not be able to achieve their asking prices.”

Beene said buyers can expect even bigger discounts on high-value properties, especially from sellers who are desperate to get rid of the homes.

Rising interest rates have also slowed the housing market by making mortgages more expensive and likely reducing demand, said Kevin Thompson, financial expert and founder and CEO of 9i Capital Group.

“Plus, the flood of high-end housing units coming onto the market simultaneously increased supply, giving buyers more bargaining power,” Thompson said Newsweek. “This reflects a shift in consumer preferences as shoppers become more cost-conscious in today’s economic environment.”

Now that interest rates are in the 6 to 7 percent range, the lower prices could be a new normal unless a significant shift forces them to lower prices, Thompson added.

“Artificially low interest rates have historically driven up real estate prices and made homes across the country unaffordable for many,” Thompson said. “It may take some time to overcome this period of adjustment and patience will be key as the market works through these changes.”