The Pulse - Manhattan Luxury Market 10/8/24

The Pulse: Upper East Side Surges as $4M+ Manhattan Contracts Jump 12%! New developments fuel a major market shift—find out what this means for you!

Last week, Manhattan’s luxury market saw a 12% jump in contracts for properties priced at $4M and above, with the Upper East Side capturing 51% of the contracts, outpacing Downtown for the first time in recent memory. What’s driving this shift? A wave of new developments that offer buyers modern amenities and prime locations.

Contract Activity Up 12% Last Week

Contracts rose by 12%, largely fueled by a surge in new development contracts, which took 39% of market share. This increase mirrors the same period last year, reflecting a strong trend toward newly built properties.

New Listings Plummet by 40%

Only 41 new listings came to market last week, a 40% drop from the prior week and 35% below the same week in 2023. This decrease might signal a shorter and less active fall listing season.

Key Takeaways

• For Sellers: With low inventory, you have leverage, but it's critical to price competitively. Consider strategic updates if your property is older to compete with new developments.
• For Buyers: Properties that have been on the market for over 100 days are seeing price reductions. Now is the time to make offers before mortgage rates fluctuate again.
• Upper East Side: The resurgence in the Upper East Side, thanks to new developments, offers buyers great opportunities near top schools and prime amenities.

Macro Market Overview

Core inflation continues to climb, while jobless claims have risen due to disruptions from Hurricane Helene. A 25-basis-point rate cut is expected from the Fed in November, which could bring down mortgage rates that are currently at their highest since early September.

The Pulse

The Market Pulse increased to 1.45 points, up 0.1 points from last month and 1.7 points higher than the same time last year.

Top 2 Contracts -See All 28 Contracts

1185 Park Avenue, #16/17F

• Asking Price: $15.9M
• Reduced by $1.55M
• Days on Market: 1,006
• 4 bedrooms, 5.5 baths

Central Park Tower, 217 W 57th St, #45B

• Asking Price: $13.75M
• 3 bedrooms, 3.5 baths
• 2,648 sq. ft. ($5,180 per sq. ft.)

Market Perspectives: Key Trends from This Week's Luxury Market Activity

• New Developments Dominate: Buyers are prioritizing new developments, which made up 39% of contracts this week. Sellers of older properties should consider modernizing or adjusting pricing to stay competitive.
• Discounted Properties Move Quickly: Nine properties went into contract after price reductions, with a median discount of 7%. A price cut might be necessary if your property has been listed for over 100 days.
• Low Inventory Boosts Leverage: With new listings down 40% from last week, sellers have leverage. However, accurate pricing is still critical.
• Upper East Side Booms: With 51% of contracts signed in the Upper East Side, buyers and sellers alike should pay attention to this resurging neighborhood.

Conclusion

The luxury market continues to be defined by strong demand for new developments and a steep drop in inventory. Sellers, ensure your property is priced well to take advantage of low supply. Buyers, now is the time to act, especially with price reductions on older listings. Stay ahead of the curve with The Pulse, where your real estate decisions begin.

If you’re interested in exploring how these trends may impact your property or potential purchase, feel free to reach out for personalized advice. Email me here.

Until next week, may all your real estate dreams and goals become a reality.