Tuesday, April 11, 2017

A One-Off Event Or Harbinger of Things to Come

The New York Post is reporting that a New York City taxi medallion sold in March for $241,000.

Just four years ago some taxi medallions sold for more than $1.3 million.

While one data point does not indicate a trend, this could be a harbinger of future taxi medallion prices in New York City.

The evidence from other cities suggests that medallion values may fall by 80 percent or more.

For example, taxi medallion values in Boston are down almost 85 percent from their peak. In Chicago, taxi medallion values have fallen from a peak price of $349,000 in 2013 to an average price of $66,000 in 2016.

If this happens, this would indicate credit unions that financed New York City taxi medallions are likely to incur more pain.

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