The May 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 transfers rose from April. In May, there
were 37 taxi medallion sales (excluding stock transfers).
2. 21 of the 37 sales were foreclosure sales, which means that
the medallion owner defaulted on the bank loan and the banks were foreclosing
to obtain possession of 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). Four additional transfers were family or
estate transactions for minimal or no consideration, which we have also
excluded from our analysis.
3. The amount of foreclosure sales indicates, in our
opinion, that medallion values will continue to decline.
4. The twelve regular sales ranged from a low of $150,000 (one
medallion), to two medallions at $155,000, to two medallions at $160,000, to
two medallions at $175,000, to two medallions at $190,000, to one medallion at
$200,000 and two medallions at $287,500.
5. The sales volume rose from April’s eight regular sales. 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.
6. The median of May’s sales was $175,000, a $2,500 (1.4 %)
decrease from April’s median sales of $177,500.
7. Based on this data and market conditions, we do not
believe that taxi medallion values have bottomed out.
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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