The Pulse - Manhattan Luxury Market 5/30/24

Manhattan's Luxury Market Surges Ahead: Contracts in the $4M & Over Segment Up 2% Year Over Year! Welcome to this week’s Pulse, your trusted source for the latest market data, insights, and expert advice in the Manhattan luxury real estate market. Here’s what you need to know:

Key Takeaways:

• Contracts Signed: 29 contracts were signed last week, matching the high number from the prior week and exceeding the 10-year average for the same period by 2%. These impressive numbers are particularly notable given the shortened week due to Memorial Day weekend.
  
  
• New Listings: New listings entering the market dropped 35% from the prior week. Inventory is down 10% this May versus last May, indicating that we may have reached the peak week for new listings this season. Overall, spring 2024 is proving to be a lighter year for inventory, as potential sellers face challenges in finding their desired homes due to lower inventory levels of renovated properties or expectations of rising sales prices if rates drop.
  
  
• Property Types:
  • Condos led the market with 16 contracts, capturing a 55% market share.
  • Co-ops followed with 10 contracts and a 36% market share, typical for peak co-op season.
• Neighborhood Highlights:
  • The Upper East Side dominated with 12 contracts, accounting for 41% of the market share, largely due to the co-op contracts.
  • Downtown Manhattan came in second with 8 properties and a 28% market share.
    
    
• New Developments had a stellar week with 8 contracts, representing a 28% market share.

Macro Economic News:

The average rate of a 30-year loan increased to 7.05% from the previous 7.01%. Consequently, mortgage applications declined by 5.7% for the week ending on the 24th, according to the Mortgage Bankers Association (MBA).

Luxury Lifestyle News:

Housekeepers in Palm Beach and South Florida are commanding salaries often exceeding $150,000, with bidding wars between mansion owners becoming common. The wealth migration to Florida from New York and other high-tax states has spiked the demand for household staff, including butlers (now referred to as “hospitality managers”), nannies, chefs, drivers, and personal security. Read the full article on Inside Wealth - CNBC.

Top 2 Contracts – View All 29 Contracts:

#1- 53 E 77th Street – Cello Building: A commercial home that could be converted into a grand mansion, asking $26M for 14,500 sq. ft. at $1,793 per sq. ft.

#2- 515 Park Avenue #15/16: A resale condo asking $25M for 6,514 sq. ft. at $3,837 per sq. ft., featuring 7 bedrooms and 6+ baths. On and off the market since 2018, originally listed for $39.5M.

Advice for Sellers:

The past two weeks have seen robust contract numbers. Evaluate your showing activity and offers. If you haven’t received any offers, consider reassessing your price and increasing your marketing efforts to secure a contract by the end of June, before the summer slowdown.

Advice for Buyers:

July and August are ideal for finding deals on homes that have lingered on the market for 100 days or more. The premium for renovated properties has decreased from its post-pandemic highs. More buyers are now willing to take on renovation projects if the property is priced as a value play. Take a look at the chart produced by Urban Digs, a trusted data source in the chart section below showing that the premium for renovated apartments has slid since the beginnings of the post pandemic years.

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.