The Pulse - Manhattan Luxury Market 12/10/24

The $4M+ Manhattan luxury market recorded a stunning 70% surge in contracts last week compared to the prior week and the same week last year. This extraordinary activity during one of the slowest months of the year underscores the market’s resilience and buyers’ confidence in long-term value.

Welcome to this week’s edition of The Pulse, where data transforms into actionable insights for smart real estate decisions.

Key Highlights from Last Week

• Contract Surge: $4M+ contracts increased 70% week-over-week and YoY—a rare achievement for December.
• Inventory Dynamics:
  • New Listings: 41 properties hit the market, a 28% YoY increase.
  • Removed Listings: 61 properties came off the market, balancing the surge in activity.
• Market Leaders:
  • Condos dominated with 68% of contracts.
  • Townhouses made a strong comeback, capturing 15%.
  • Downtown led, while the Upper East Side and Midtown tied for second place.
• New Developments: Accounted for 21% of contracts, showcasing their ongoing appeal for buyers seeking modern construction and luxury finishes.

Curious how these trends impact your neighborhood or building? Reply to this email to request a custom analysis.

Why December Is Breaking Records

Several factors may be driving this unusual December activity:

1. Economic Optimism: Stock market gains and stable economic indicators are buoying buyer confidence.
2. Post-Election Clarity: Buyers often feel more secure making significant investments after elections.
3. Manhattan’s Stability: Unlike other markets, Manhattan luxury prices have remained stable since 2019, attracting buyers seeking long-term value.

New Developments:

While new developments often command premium prices, they accounted for 21% of signed contracts last week, reflecting their strong appeal. However, select buildings offer opportunities for concessions or price reductions. With my insider track and expertise, I can guide you to maximize these opportunities and secure the best possible terms.

Market Metrics: A Snapshot of Sentiment

Market Pulse: 2.5

• Up 0.1 points month-over-month and 3.8 points YoY.
• Reflects strong buyer activity relative to inventory.

Climate Index: 0.92

• Up 3% month-over-month and 95% YoY.
• Indicates improving conditions for sellers.

Macro Market Insights

While international unrest in France and South Korea roiled financial markets, domestic news provided stability:

• Jobs Report: Satisfactory results support predictions of a 25-basis-point Fed rate cut in December, with a pause expected in January.
• Mortgage Rates: Rates are likely to decline slightly after the anticipated rate cut, improving conditions for buyers.

Market Insights and Perspectives

For Sellers

• Capitalize on Momentum: December’s contract surge highlights strong buyer interest. If your property isn’t performing, consider pausing to reassess its pricing and marketing strategy for a strategic spring relaunch.
• Know Your Micro-Market: Deep knowledge of your building and neighborhood is critical to setting realistic pricing and expectations.

Need a custom report on your micro market, email me here.

For Buyers

• Target Strategic Opportunities: Focus on unrenovated properties, co-ops, or listings with multiple price reductions and over 100 days on the market.
• Consider New Developments: These properties often provide turnkey solutions, modern amenities, and competitive pricing in today’s market. Select buildings may also offer concessions or reductions for savvy buyers who know where to look. With my insider knowledge, I can help you secure the best deals.
• Monitor mortgage changes to maximize your purchasing power. Rates may drop slightly if the Fed drops rates 25 basis points in December.

Need some expert advice, navigating the market , email me here.

Behind the Deal: Expertise in Micro-Markets and Strategic Marketing

Last week’s contract for 50 UN Plaza, #31B illustrates why deep market knowledge and thoughtful marketing are essential for success:

• Final Asking Price: $5,990,000
• Purchase Price in 2017: $9,800,000
• Time on Market: 451 days

While 50 UN Plaza offers excellent layouts, luxury amenities, and semi-private landings, its less desirable location has proven challenging in a softer market. Additionally, the listing suffered from several marketing missteps:

• Distracting photos featuring loud contemporary art detracted from the apartment’s appeal. Staging would have helped showcase the property’s potential.
• The absence of a compelling video or story failed to create buyer desire or urgency.
• Overpricing led to prolonged time on market, reducing its perceived value and increasing carrying costs.

Key Takeaway:

Understanding a building’s unique dynamics and tailoring your strategy is essential. This is where I bring unmatched value—diagnosing challenges, addressing them with precision, and creating tailored solutions to position properties for success.

Does your property need expert repositioning and marketing? Let’s discuss how I can help. Email me here.

Top Contracts of the Week- SEE ALL 34 CONTRACTS

#1: 111 W 57th St, Unit 38B

• Asking Price: $12.5M
• Details: 4,200 sq. ft., 4 bedrooms, 4.5 baths.

#2: 50 UN Plaza, Unit 31B

• Asking Price: $5.99M
• Details: 3,500 sq. ft., 3 bedrooms, 3.5 baths.

Conclusion: Your Next Move in Manhattan’s Luxury Market

Manhattan’s luxury market continues to defy expectations, offering opportunities for both buyers and sellers. Sellers, capitalize on strong demand and low inventory. Buyers, leverage the quieter holiday season to negotiate great deals.

Subscribe to The Pulse for weekly insights, and share it with others who could benefit. Watch my advice videos on my YouTube channel, Carol Staab - New York Real Estate Guru. Until next week, may your real estate dreams become a reality.