It was a very mixed second quarter 2018 for the Manhattan residential market (condos and co-ops), according to the latest report by Douglas Elliman. Those results included a decline in sales prices and number of closed sales, along with an increase in inventory.

Jonathan Miller of Miller Samuel Inc., who authored Elliman's Q2 2018 Manhattan Market Report, said in a news statement: “Overall, the key market issue continues to be consumer uncertainty as they process rising rates, the new federal tax law, and some confusion about whether the economy will sustain its current strength. Everything has paused.”

For the overall Manhattan residential market, the average sales price was $2,090,567 in second quarter 2018, a year-over-year drop of 4.5 percent. The median sales price during this latest quarter was $1,100,000, a decline of 7.5 percent from the same period in 2017. The number of closed sales dropped 16.6 percent from second quarter of last year to 2,629 in this year's quarter. On the other hand, active inventory jumped 10.7 percent year-over-year to 6,985.

Co-ops in the borough saw a slight improvement in terms of sales prices in this year's second quarter. The average sales price for a Manhattan co-op was $1,380,512, a rise of 1.2 percent year-over-year. The median sales price was $810,000, an uptick of 2 percent from second quarter 2017. However, the number of closed sales fell 13.1 percent from the same period a year ago to 1,455. But there was plenty of inventory in second quarter 2018—3,251 to be precise, an increase of 17.2 percent year-over-year.

Meanwhile, prices for Manhattan condos dipped in the latest quarter in contrast to exactly a year ago. The average sales price was $2,970,576, a decline of 4.9 percent, while the median sales price was $1,650,000, a 12 percent drop. The number of closed sales in this latest quarter was 1,174, a year-over-year decline of 20.6 percent. Again, there was a rise in inventory over second quarter 2017 with 3,734.

Despite the less-than-stellar findings, there's still an argument for optimism, according to Steven James, Chief Executive Officer, New York City, Douglas Elliman. “Even though we are seeing some weakness, there is a tremendous resilience in the Manhattan residential market. Never count Manhattan out. Astute buyers will find opportunity in this market.”

To read the full report, click here.

David Chiu is an an associate editor at The Cooperator.