The Pulse - Manhattan Luxury Market 5/21/24

Pulse

The Pulse - Manhattan Luxury Market 5/21/24

The Manhattan $4M & over luxury real estate market continued its impressive surge last week. Welcome to this week's edition of The Pulse, your trusted source for the latest market data, insights, and expert advice in the Manhattan luxury real estate market.

Key Takeaways

  • Contracts Signed: 29 contracts were signed last week, a robust 45% higher than the benchmark number of 20 for a healthy market, despite a 19% decrease from the prior week. Year-to-date contracts are down 17% compared to last May.
  • New Listings: 81 new listings entered the market, up 5% from the prior week but down 5% compared to last May.
  • Market Pulse: The $4M to $10M segment remains neutral, while the $10M & over segment is slightly favoring sellers.

Market Segments

  • Condos: Dominated with an 83% share, with Downtown leading at 45% and Midtown at 24%.
  • New Developments: Strong performance with a 38% market share, showing a 7% increase in contracts in April, aligning with pre-pandemic years.

Discount Trends

  • Discounts: 7 contracts had a median discount of 9% from the original price.

Macro Economic News

  • Economic Indicators: CPI lower than expected. The Federal Reserve indicates potential rate cuts in September if inflation continues to cool. Mortgage rates fell slightly, averaging 7.02%.

Top Contracts of the Week - Browse all 29 contracts

#1- The Highline – 500 W 18 #27A - new development condo in Chelsea

  • Asking Price: $17.915M
  • Features: 4 bedrooms, 4.5 baths, $5,156 per square foot

#2. 30 Crosby Street #5B - resale condo

  • Asking Price: $10.95M
  • Features: 3 bedrooms, 4 baths, 4,164 square feet, $2,629 per square foot

 

Advice for Sellers

As evidenced by the surge in contracts significantly above the average benchmark, we are in the peak of the spring selling season, which will run through June. Take advantage of this prime time before the summer slowdown. The fall market will bring its own dynamics, including a possible rate cut and the noise from the presidential election, which typically keeps buyers on the sidelines until after the election.

While The Pulse provides an overview of the Manhattan luxury $4M & over market, remember that each building is its own micro-market. The most critical data for pricing your home is the market snapshot of your building, followed by the state of the market for your property type in your neighborhood, and then a macro view of the Manhattan market. Additionally, keep an eye on macroeconomic trends.

If you would like a detailed market and performance analysis report for your building, please email me.

 

Advice for Buyers

If you're looking for a deal, focus on homes in July and August that have been on the market for 100 days or more. Sellers may be more negotiable to get a deal done. Co-ops and resale condos that are 10 years or older often offer better values.

Hire a Specialist: Always hire a broker with deep inside knowledge of the buildings and neighborhoods you're interested in. I recently observed a buyer using his townhouse specialist broker for a condo purchase. The result? A contract that, after 7 months, looks like it may not close. Even if it does, this buyer is unable to do a renovation due to a one-year building elevator project. This situation highlights the pitfalls of not hiring a specialist.

 

Luxury Lifestyle News

Sotheby’s has launched Private Office, a one-stop shop for its wealthy clients. This exclusive department provides access to off-the-market luxury assets, including real estate, fine cars, and art. Named the Family Office, it offers billionaire clients the ability to buy and sell assets, access financial services, and obtain staffing solutions. This service combines the expertise of Sotheby’s International Realty, Sotheby’s Auction House, RM Sotheby’s, and Sotheby’s Financial Services. [Article]

 

Conclusion and Further Assistance

As we navigate the peak of the spring selling season, it's clear that the Manhattan luxury market remains vibrant and full of opportunities. Sellers, capitalize on the current surge to list your properties before the summer slowdown. Buyers, take advantage of the upcoming summer months to find negotiable deals. Always hire a specialist with deep knowledge of your desired area to avoid costly pitfalls.

If you found this newsletter helpful and want more personalized advice or have specific questions about the Manhattan luxury market, please reach out to me. I'm here to help you navigate the complexities of the real estate market and make informed decisions. Contact me today for a consultation or to request a detailed market report for your property. 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.