The
March 2018 New York City Taxi & Limousine Commission (TLC) sales results
have been released to the public. And as is our practice, provided below
are James Shenwick’s comments about those sales results.
1. The volume of sales continues to remain low. In March,
there were only 29 taxi medallion sales (excluding stock transfers).
2. 14 of the 29 sales (almost half) were foreclosure or estate
sales, which means that either: (1) the medallion owner defaulted on the bank
loan and the banks were foreclosing to obtain possession of the medallion or;
(2) the medallion owner died, and the estate was selling the medallion. We disregard
these transfers in our analysis of the data, because we believe that they are
outliers and not indicative of the true value of the medallion, which is a sale
between a buyer and a seller under no pressure to sell (fair market value). An additional transfer was from an individual
to an LLC for no consideration, which we have also excluded from our analysis.
3. The 14 regular sales they ranged from a low of $163,333 (four
medallions), to six medallions at $180,000, to two medallions at $225,000, and two
medallions at the higher end of the price scale at $300,000 and $350,000.
4. The low sales volume seems to indicate that at this stage
of the market, not many parties are involved in selling or buying medallions,
possibly due to the fear that medallion prices may further decrease.
5. The median of March’s sales was $180,000, a $17,500 (9 %)
decrease from February’s median sales of $197,500.
6. However, politicians have spoken recently about capping
the number of ride–share app drivers and/or instituting
congestion pricing in Manhattan – either of these measures would stabilize or
increase the price of medallions.
Please continue to read our blog to see what happens to
medallion pricing in the future. Any individuals or businesses with questions
about taxi medallion valuations or workouts should contact Jim Shenwick at (212)
541-6224 or via email at jshenwick@gmail.com.
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