New York real estate agent Moseley Realty Co. announced Wednesday that it was slashing the price of homes in five of its markets.
The company also said it plans to cut the median sale price in five more markets, and it will also begin rethinking its real estate appraisal and appraisal service.
The cuts were announced Wednesday, two days after the Real Estate Board of New York reported that the median home price in its markets in New York City and Brooklyn was up 11% and 17%, respectively, from the same period last year.
In its quarterly earnings call, the company said that it expected to cut prices in all five of the markets, with the median price in Brooklyn at $2,700, and in Manhattan at $3,900.
Moseley’s new prices come as the housing market in the New York area is in the midst of a massive decline.
According to a new analysis by the real-estate firm Trulia, the median income in the state dropped to $38,400 from $42,000 in January.
Meanwhile, the number of vacant homes in New Jersey has dropped by over 100,000 since November.
And the number and cost of foreclosed homes in the area has risen by a record 400,000 to 2.3 million since December.
The company said it will cut prices across the board, including in the Brooklyn market, where median prices are expected to fall by 9% and median sale prices are likely to drop by 20%.
Moseleys prices are also expected to drop in Manhattan and in Queens, where the median sales price is expected to be up nearly 17%.
In its fourth-quarter earnings call last month, Moseleys CEO and president Paul J. Mosely said the company was looking to expand into markets that were already saturated, but that it wasn’t going to be a huge player in those markets, given the low sales volume.
Meseley has a combined portfolio of nearly $1 billion in assets in its Brooklyn, Manhattan, Queens and New Jersey markets.
The company is also cutting prices across its entire portfolio of properties in California, Texas and Florida.
Mosesley said it is also exploring the possibility of buying properties in cities across the country and in emerging markets.