Just as Manhattan's luxury real estate market geared up for an early spring awakening, an unexpected twist unfolded. Following a surge in contracts, indicating an earlier start to the spring season, the recent winter storm cast a chilly spell, causing contracts to dip by a significant 35%. While last week’s contract numbers are disappointing, they are no cause for alarm! January is typically a slow contract activity month, and we can add that the Martin Luther King holiday caused a shorter business week.
Welcome to this week's edition of the Pulse. Let's dive in!
#1 - While Manhattan’s luxury contracts dropped 35%, contracts are up 19% this January versus last January year to date. While inventory is up 12% this January versus last January, Manhattan inventory is rising slowly. A healthy increase in inventory is a positive for this market. It will create more transactions, more buyers will enter the market, especially with signs pointing to mortgage rates coming down further. As a result, more sellers will list as they become buyers for the fresh properties on the market.
#2 - Condos & downtown continue their typical lead with 11 condos in contract and a 73% market share and downtown enjoying a 47% market share.
#3 - New developments performed well last week and made up 33% of the market.
#4 - The biggest news last week was the contract of Central Park Tower’s #107/108 at 217 W 57th St asking $149.5M. It is great news for Billionaire’s Row and Gary Barnett the Extell developer. The contract was for over $100M and so far the buyer remains anonymous. It was the most expensive sale ever for Gary Barrett’s Extell.
#1 – Central Park Tower – 217 W 57 #107- 108 asking $149.5M – 7 bedrooms – 8.5 baths – 12,557 sq ft. - $11.905 psf
#2- 15 Bank Street – a stunning townhouse with a top renovation in the West Village asking $30M. 5 bedrooms, 5.5 baths , 6,000 sq ft - $5,000 psf.
If you are thinking about listing this spring, it’s not too early to start interviewing brokers and getting your home prepared to present at its best. As I revealed some good news last week, sellers with unrenovated and dated properties are seeing more interest from buyers if the home is in a fine building and a premium location. However, do the things that are necessary to prepare your dated home to look fresh, well maintained and appealing. Take a look at the Urban Digs (a trusted data research source) optimum time to list chart in the box below. You will see the best times historically to list.
Contact me for a consultation and custom-tailored charts to provide more intel to help you navigate the market.
The market has been favoring you greatly last year. This spring is predicted to be a much more active market. While you may have less leverage in the market you will have more inventory to choose from due to more sellers feeling confident to list. If there are properties that you love and are passing up thinking prices are going to fall lower this year, it is probably not going to be the case. Your negotiability is best now when the market is still slow and with properties that have been lingering on the market.
Contact me to explore the available listings and find your dream home, and let me provide you with custom-tailored charts for more intel to help you navigate the market.
In conclusion, while we saw a temporary dip in contracts, there are positive indicators for Manhattan's luxury real estate market. The increasing inventory, strong performance of condos and downtown properties, and notable contracts like Central Park Tower's all suggest a promising year ahead.
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Thank you for joining me in this week's Pulse, and I look forward to keeping you informed about the ever-evolving Manhattan luxury real estate landscape. Please email me here for custom tailored charts for deep dives into important neighborhood and building information to help you navigate the Manhattan real estate market. Until next week! May your real estate goals and dreams become a reality!
Carol Staab has an innovative luxury real estate practice that provides an elite level of concierge service through unparalleled world-class marketing and a hands-on business approach. Her mission is to give her clients an exceptional experience while helping them achieve the best results possible.