The Pulse - Manhattan Luxury Market 11/5/24
Pulse
Pulse
Manhattan luxuriy $4M & over contracts surge 24% in october, new development dominates with a 42% share. Welcome to this week’s edition of The Pulse, your source for insights into Manhattan’s $4M and over residential market. This week, we explore october’s remarkable contract activity and the shifting dynamics in new development. Here’s what you need to know!
Last week, contract activity dipped by 16% yet still performed 20% above the benchmark for a healthy market. Impressively, October contracts surged 24% year-over-year, aligning with the 10-year October average. New listings, however, dropped sharply by 66%, marking a seasonal trend that typically continues until early February when the spring market begins. Year-over-year, new listings fell 24%, despite lower interest rates earlier this year.
Mortgage rates have continued their five-week ascent, recently crossing the 7% threshold. This development sidelines potential domestic buyers reliant on financing. Manhattan luxury sellers, on the other hand, appear to be waiting on the sidelines, influenced by the uncertainty surrounding the upcoming election and the hope for future rate cuts to stimulate even higher levels of buyer activity. Additionally, many sellers are holding off, anticipating that waiting could lead to increased sales prices once the market stabilizes. Nevertheless, Manhattan’s luxury market, which experienced a 24% year-over-year increase in October contracts, benefits from its unique liquidity—over half of transactions are likely all-cash. Interestingly, the upcoming election seems to be impacting sellers more than buyers, contributing to the 23% decline in new listings.
With only three weeks until the slower holiday season, time is of the essence. Securing a contract now places you in an optimal position. My recent success at The Leighton House, where my clients accepted an all-cash offer close to the asking price, underscores the importance of a comprehensive strategy. This deal also highlighted the power of effective negotiation tactics, which played a crucial role in achieving favorable terms for my clients. This victory was made possible through luxury staging, a creative narrated video, strategic perseverance, and skillful negotiations that balanced the interests of all parties involved. If your property is stagnating, consider removing it from the market and consulting a trusted advisor who can re-evaluate your property and craft a refreshed marketing plan for the new year.
Cash buyers, this is your moment. Leverage your position in negotiations, not necessarily for price reduction but for a stronger standing—as demonstrated by the strategic negotiations in my recent Leighton House deal, which secured an advantageous outcome for my clients. Now is also a prime time to explore properties that have lingered on the market for 100 days or more; these sellers may be more open to negotiation. Additionally, more buyers are revisiting co-ops, where the enormous value can outweigh the renovation commitment. Anecdotally, co-op boards have become more accommodating in recent years.
#1- 140 Jane Street #6 – West Village: A new development condo asking $40.5M, spanning 7,884 sq. ft., with 5 bedrooms and 5.5 baths ($5,136 psf).
#2- 20 E 76th Street #14C – The Surrey Hotel & Condo, Upper East Side: Another standout new development, listed at $11M, offering 2,127 sq. ft. with 2 bedrooms and 2.5 baths ($5,171 psf).
The luxury Manhattan market remains resilient amid macroeconomic shifts, showcasing strong cash buyer activity and a renewed focus on new developments. Whether you’re preparing to sell or considering a purchase, strategic timing and tailored market insights are crucial. For more on mastering high-stakes negotiations and ensuring successful outcomes, check out my video on negotiation strategies, where I discuss key tactics to manage emotions and set priorities during luxury home deals. Be sure to explore my YouTube channel for detailed real estate advice and insights into navigating Manhattan's luxury market.
May your real estate dreams and goals become a reality!
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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.
