Manhattan's luxury market stumbled into 2024 with a startlingly slow pace, as only 16 contracts were signed for properties over $4M in its first week! Join us as we dive into the data and uncover insights into last week's surprising numbers in this edition of the Pulse."
While 16 contracts may seem to be a low number, we are actually 14% higher than the first week of 2023. Additionally, new listings that entered the market were down 15% over the same first week of 2023, while off-market listings were up 15% last week over the first week of 2023. Interpreting this data tells us that last week was stronger than the first week of January 2023 due to an increase in contracts and a decrease in listings coming on the market. The 15% increase in off-market listings suggests that fewer sellers were able to close deals and were not willing to adjust their prices to the market.
Before diving into our key takeaways, don't miss our exclusive video features: "How Winter Views of the Park Cost Sellers" and "How to Sell Your Home in As-Is Condition." These insightful videos are packed with strategic tips and market intelligence to guide sellers and buyers through Manhattan's luxury real estate landscape. Watch now to enhance your market knowledge and strategy!
#1 - Condominium Dominance: Condos and Downtown Manhattan are leading the market, with condos grabbing a substantial 63% share through 10 contracts, while Downtown follows closely with a 56% market share and 9 contracts. This trend underscores the enduring allure of luxury living in these vibrant areas.
#2 - New Development Reigns Supreme: New developments have carved out a significant presence, commanding 44% of the market share with 7 contracts. Buyers continue to be captivated by the allure of brand-new luxury condos and the extensive amenities they offer.
#3 - Negotiation Opportunities: There were 5 contracts signed with discounts from their last original asking prices, showcasing a median discount of 5.7%. This indicates a market ripe with negotiation potential for discerning buyers.
#4 - Market Rhythms: Expectations point towards a slower pace in new listings and signed contracts, continuing until the early days of February. This lull precedes the anticipated spring season rush, suggesting strategic timing for both buyers and sellers.
#1- 50 W 66# 40W: A stunning new Extell development super tall on the Upper West Side, listed at $16.5M. This property, boasting 3 bedrooms, 3.5 baths, and 2,816 sq. ft at $5,879 per sq. ft, spent 218 days on the market.
#2- 15 CPW # 28B: A coveted resale condo in Billionaires Row's 15CPW, embodying the pinnacle of luxury living. Asking $15.75M - 34 days on market- 2 bedrooms- 2.5 baths - 2,816 sq. ft. - $6,653 psf.
With spring on the horizon, now is the ideal time to prepare your property for marketing, especially with photos and video. For those with park views or terraces, consider timing your listing to showcase lush spring landscaping, maximizing your property's appeal and value. With mortgage rates expected to decrease, anticipate increased buyer interest.
Those planning to finance can look forward to potentially lower rates this year. With an expected increase in inventory, keep an eye out for premium properties, and don’t hesitate to negotiate on listings that have lingered on the market.
As we gear up for a dynamic spring season, both buyers and sellers have unique opportunities in the current market landscape. Sellers can strategically position their properties to capture maximum value, while buyers may find more room for negotiation and choice. Keep abreast of these trends and more with the Pulse, your indispensable guide to navigating Manhattan's luxury real estate. 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.