Leave a Message

Thank you for your message. We will be in touch with you shortly.

The Pulse - Manhattan Luxury Market 4/1/24


The Pulse - Manhattan Luxury Market 4/1/24

The substantial 43% drop in Manhattan's luxury contracts over $4M last week might seem alarming at first glance, but it's important to interpret this within a broader context. Despite this decline, the market still shows signs of health and resilience. Here's a closer look at why there's no need for nervousness and what this means for both sellers and buyers.

Understanding the Shift

  • Market Resilience: The fact that there were 28 contracts signed last week, keeping us 40% above the healthy market benchmark, is a strong indicator of underlying market strength. Additionally, a year-over-year increase of 8% in March's contract numbers suggests a positive trend in the luxury real estate market.
  • Seasonal Adjustments: The decrease in new listings could be attributed to seasonal factors such as the Easter holiday and spring break. This is a common annual fluctuation and not necessarily indicative of a longer-term market downturn.
  • Balanced Supply and Demand: Inventory levels have remained steady, with demand continuing to outpace supply. This balance supports a stable market environment, even if weekly or monthly fluctuations occur.


Market Segments and Trends

  • Geographic Shifts: The Upper West Side's emergence as a frontrunner in market share, overtaking downtown Manhattan, suggests shifting preferences among luxury buyers. This could open new opportunities in areas previously considered secondary in the luxury market.
  • Diverse Demand: The dominance of condos and the notable increase in co-op contracts highlight a diverse buyer interest in property types. Such diversity can help buffer against market volatility


Economic and Macro Factors

  • Economic Indicators: Despite ongoing inflation, the economy shows signs of resilience, as evidenced by the S&P 500's performance and a slight decrease in mortgage rates. These factors can buoy market confidence.
  • New Development and High-End Market: The slowdown in new development contracts and the lull in the $10M & over segment might indicate a more cautious approach from high-end buyers, but it also presents opportunities for strategic pricing and targeted marketing.

Top 2 Contracts - See Details of All 28 Contracts

#1- 1125 Fifth avenue #8 - a prewar co-op asking $9.995M reduced $1,505,000 2 months ago. 5 bedrooms- 5.5 baths - 218 days on market.

#2 100 E 53 #52A condo - recent 2018 new development -7 days on the market - 3 bedrooms- 3.5 baths- 3,385 sq ft- $2,747 psf


Guidance for Sellers and Buyers

Sellers: Contracts are up 8% this March versus last March and inventory is relatively flat. The market presents favorable conditions for listings, with a focus on strategic pricing and marketing to align with current trends and buyer interests. Navigate Complexity with Ease. Receive expert advice and assistance to effortlessly move through Manhattan's intricate luxury market.

Begin your journey and contact me here.

Buyers: Rather than waiting for further rate drops, buyers should consider the current market dynamics, which suggest increased competition and potentially higher prices in the future. Refinancing offers a path to secure a favorable rate in the future. Connect with me here for more advice on navigating the complex Manhattan market and securing the home of your dreams.



While the drop in luxury contracts might prompt initial concern, the overall market dynamics, including steady inventory levels, diverse demand, and positive economic indicators, suggest a resilient and opportunistic landscape for Manhattan's luxury real estate. Both sellers and buyers should remain informed and adaptable to navigate this market effectively.

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

Work With Carol

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.