Manhattan home prices were thrashed again in April, falling the most since 2010 - but this time, there may be somewhat of a silver lining. The falling prices caused buyers to "pounce", resulting in 1,193 homes under contract during the month - more than any month since April of 2015, according to data provided by Bloomberg and StreetEasy. Perhaps deflation is not so evil after all.
StreetEasy's price index fell 5.2% from a year ago to $1.11 million. The index measures change in resale prices for the same properties over time. It was the largest decline in the index since April 2010, when the index dropped 6.1%.
The newfound bid for homes could be a sign that Manhattan's market may be emerging from a drought of buyers, who had been previously been sitting on the sidelines, scared of overpaying for properties. As prices move toward more realistic buyer expectations, capital has been put to work.
Grant Long, senior economist at StreetEasy said: "Sellers are finally getting that many of their price expectations were not realistic. They're lowering their prices to a point that's attractive to buyers."