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00:00Like so many things that our society today is bifurcated . Absolutely. One of the characteristics of this market. People look at it through the eyes of one hundred million dollar apartment and only about 13 percent of the market is really new development. That super luxury product. What we've seen in the resale market which we're seeing nationally is we're seeing record prices the resale median price in New York City or in Manhattan was eight hundred ninety five thousand dollars. But we're also seeing even in the co-op market which is a different type of housing stock than most Americans are familiar with is 85 percent of our are 80 75 percent of our market and that's a record price too. So so what we're having is tight supply of the product with tight supply. We're seeing record record prices. You're seeing record number of free sales but actually in order to get those sales across the finish line you're seeing some element of discounting and on average that discounting of prices was six point eight percent. Can you break it down in terms of the different segments of the market here. Who's having to be a bit more reflective. I'm sure they're asking Well I think there's a lot more reflective behavior going on in the high end of the market. So in not to be cavalier about the numbers but really when we're talking like north of five million dollars in Manhattan which is about roughly temperate 10 percent of the market. And what we're seeing in that market is you're seeing a sharp decline in supply from bloated levels to excessive levels because owners are letting their listings expire because they're they've been sitting on the market for a long time. And what we're seeing the characteristic here in this market across all price points is that buyers aren't budging. So when there's more discounting as you said but it means that the sellers are travelling farther to meet the buyers ISE and and and the buyers are just sitting firm. Is this just normal cyclical stuff people get over optimistic they build too much then they pull back it's like or is there something about this that's sort of different than prior cycles that you've seen. So the answer is both and and the reason is that yes we have we have periods where the market go gets overpriced and then we see it slide back. But what we just came out of towards the end of the financial crisis was this aspirational pricing component that that I like to describe where there was incredibly irrational behavior is a skewed higher in price where sellers were simply picking numbers that had no basis of reality. There was this incredible optimism about pricing that wasn't supported by economics .

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Why Manhattan Homebuyers Aren't Budging on Prices

Jonathan Miller, Miller Samuel president and chief executive officer, discusses Manhattan real estate prices with Bloomberg's Scarlet Fu, Joe Weisenthal and Julia Chatterley on "What'd You Miss?" (Source: Bloomberg)

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