The Manhattan $4 millon and over luxury market just entered its eighth straight strong week with 24 signed contracts. The Upper East Side surprisingly beat the downtown market with 9 signed contracts versus 7 in the downtown market. The condo market outpaced the co-op market 18 to 3. The average number of days on the market were 507 and the average discount from the original asking price to the last asking price was 10%.
As we have seen the Manhattan luxury market has been strong for the last eight weeks with the number of signed contracts all above 20. Lets take a deeper look at the luxury market numbers to see where the market is compared to the first quarter of 2017. These numbers will let us know how well the market is really doing! We saw 282 signed contracts this far which is a 15% decline from the first quarter of 2017. The average days on market this first quarter rose to 469 from 390 in the first quarter 2017. The average discount was 10% this quarter before a property went to contract.
So what is the big why? The weather was certainly challenging. We had four big storms that kept buyers idle. There is the drama of the stock market dropping over 3,000 points since January.
That said even with these events we are still seeing a healthy number of deals getting done. That is because sellers are traveling further to meet the buyer in negotiations. The large number of average days on the market and the 10% average discount demonstrates that buyers are seeing the market as overpriced. Prices are coming down very slowly. The peak markets were 2014 and 2015. When market prices shift it usually takes several years for sellers to stop overpricing their homes. This is starting to happen now.
Top Luxury Real Estate Sales and Stats
Here is the breakdown according to Manhattan neighborhood:
- Weekly Sales Volume Total was $172,563,000 versus $184,280,000 the prior week.
- Average asking price was $7,190,125 versus $7,087,692 the prior week.
- The average number of days on the market was 507 versus 409 the prior week. 180 days is the normal range. Luxury real estate has been taking longer to sell.
- The average percentage of discount from original asking price was 10% versus 14% the prior week.
- The Number 1 signed contract was a condo at 72 Mercer Street #PHW asking $13.95 million originally asking $16.950 million.
- The Number 2 signed contract was a condo at 1049 Fifth Avenue #19B asking $12.5 million.
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