TheMarch 2019 New York City Taxi & Limousine Commission (TLC) sales resultshave been released to the public. And as is our practice, provided below
are Jim Shenwick’s comments about those sales results.
1. The volume of transfers fell from February. In March,
there were 38 unrestricted taxi medallion sales.
2. 28 of the 38 sales
were foreclosure sales (74%), which means that the medallion owner defaulted
on the bank loan and the banks were foreclosing to obtain possession of the
medallion. One sale was an individual to an LLC and two sales were an estate
sale. 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).
3. The large volume of foreclosure sales (approximately 74%)
is in our opinion evidence of the continued weakness in the taxi medallion
market.
4. The seven regular sales for consideration ranged from a
low of $135,000 to $310,000 (three medallions) to $340,000 (one medallion) and
a high of $350,000 (two medallions).
5. The fact that 74% of all transfers in March 2019
were foreclosure sales shows continued weakness in the taxi medallion market
and no sign of a correction.
6. At Shenwick &
Associates we believe that the value of a medallion is approximately $160,000
and the value of medallions continues to weaken.
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.
No comments:
Post a Comment