The Pulse - Manhattan Luxury Market 4/8/24

Manhattan's luxury real estate market just threw us a curveball with a surprising 18% dip in the number of contracts last week. Welcome to The Pulse— your trusted weekly guide, providing insightful analysis, market trends, and expert advice on Manhattan’s complex luxury market.

Despite the unexpected downturn post-Easter, which typically ushers in a busier market phase, there's no need to sound the alarms just yet. This week's stats are a mirror image of last year's figures for the same period, reassuring us that the market is healthy.

Last Week's Takeaways

Inventory Rejuvenation: With 98 new listings making their debut, we witnessed a remarkable 75% surge from the last week, signaling the onset of the most anticipated active listing season. However, a closer look reveals a net new inventory of just 23, after accounting for the week's signed contracts and off-market withdrawals.

Condo Dominance: The condo market as usual claimed the lion's share with 78%, while townhouses showed notable strength at 17%. The co-op segment, however, saw minimal action with only one solitary contract.

Neighborhood Trends: Downtown continued its reign as the market leader with a 39% share, closely followed by the West Side's 30%.

New Developments on the Rise: Capturing a 39% share, new developments stood out this week, highlighting the desire of buyers to purchase turnkey apartments with excellent amenity packages.

Quarterly Market Snapshot: Reflecting on the first quarter, there was an 11.6% dip in luxury sales year-over-year, though median prices rose by 2.7% to reach $5.8M. Interestingly, inventory expanded by 9% year-over-year, marking the first increase in four quarters, offering a glimpse into evolving market dynamics. Be sure to read Jonathan Miller's 1st Q Manhatta Sales Report here for the rest of the story.

Economic Outlook: Fed chairman Powell stated this week that he sees rate cuts happening this year but they won't happen soon. he dispelled any notion that the Fed rate cut decision might be affected by this year's presidential election

This week's 2 top contracts – View All 23 Contract Details Here

432 Park Avenue #37B - $12.4M reduced $3.1M a month ago- recent new development condo- 3 bedrooms- 4.5 baths -4,003 sq ft - $3,097 psf - 96 days on the market. 432 Park Avenue was in the news last week . It seems like the condo board's battle with developers is heating up. Read the Real Deal article here.

244 W 11 Townhouse - Greenwich Village - asking $10M - reduced $2M a month ago- 4 bedrooms- 4.5 baths - 5,451 sq. ft- $1,834 psf- The town house market in the West Village is very strong.

This Week’s Seller & Buyer Advice

Sellers: The current landscape, with a net increase of just 23 listings, significantly tilts in your favor. Capitalize on this prime window extending to June, before the anticipated summer slowdown. Remember, the trifecta of correct pricing, impeccable presentation, and a comprehensive marketing strategy, guided by an adept broker, remains your key to success. Email me with any of your questions, request for a tailored report or to schedule a call.

Buyers: In a market where cash reigns supreme, wield your purchasing power wisely. While the temptation to push for below-market prices is strong, align your expectations with the reality that sellers, unless pressured, hold their ground.

As we wrap up this week's Pulse, let's remember that the fabric of Manhattan's luxury real estate market is woven with both challenges and opportunities. Whether you're contemplating buying, selling, or simply seeking insights into the luxury landscape, I invite you to reach out with your questions or share this report with fellow enthusiasts.

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