The Pulse - Manhattan Luxury Market 6/4/24
Pulse
Pulse
$4M & Over Market Shows Resilience Despite Memorial Day Weekend! Welcome to this week’s edition of the Pulse, your trusted source for the latest insights and trends in Manhattan’s luxury real estate market. Here’s what you need to know:
Contracts Signed: 27 Contracts Signed - The Manhattan $4M & over luxury real estate market had a remarkable week, considering the Memorial Day weekend. A total of 27 contracts were signed, which is 35% above the benchmark number of 20 contracts for a healthy market. This shows strong buyer confidence and continued interest in high-value properties despite the shortened week.
Year-over-Year Contract Comparison: While the weekly performance was strong, it’s important to note that contract numbers were down 20% this May compared to last May. This decline could be attributed to various factors, including changing market dynamics, interest rates, and economic conditions. Despite this, the market’s ability to maintain a high number of contracts during a holiday week is a positive indicator of its resilience.
New Inventory: 52 New Listings: Entered the market, matching the previous week’s figures. Inventory is down 3.5% this May compared to last May.
$5M - $10M Properties: The market pulse stands at 0.2, indicating a balanced, neutral market.
$10M and Over Properties: The market pulse is at 1.8, slightly favoring sellers.
Condos: Led the market with a 63% share.
Co-ops: Strong performance with a 26% share. May and June are typically the busiest months for the luxury co-op market.
Downtown: In the lead as usual, Downtown Manhattan held a 44% market share last week. This area continues to attract buyers due to its vibrant lifestyle, proximity to financial hubs, and iconic properties.
Upper East Side: Came in second with a 37% share, bolstered by a strong performance in the co-op segment.
$10M and Over Market: Over one-third of the contracts were for properties in this segment.
New Developments: One-third of the contracts were new developments, with May seeing the highest number of new development sales since June 2023. Notably, 65% of these sales were all-cash transactions in the first quarter of this year.
Mortgage Rates - As of June 3, the average rate for a 30-year fixed mortgage dropped to 6.99%. Economists are keenly watching May’s job report for insights into the economic slowdown in 2024.
Blended Family Estate Planning - Navigating financial planning with children from prior relationships can be challenging. For tips on managing this complex issue, read this insightful article from the Wall Street Journal: Blended Family Estate Planning. {article}
Leverage June: With contract signings well above the healthy 20 number for the past three weeks, now is the time to push for a deal before the July and August slowdown.
Presentation Matters: Ensure your property is well-presented online. If your property is unrenovated, consider taking it off the market until fall to paint and stage it properly. Quality presentation can significantly impact buyer interest.
Custom Report and Expert Advice: Interested in a detailed market analysis for your property? Contact me today to receive a personalized report and tailored advice to maximize your property’s potential. Let’s work together to ensure you make the most of this dynamic market. Email me here.
Timing Your Purchase: July and August are excellent months to find good deals on homes that have been on the market for 100 days or more. Sellers of these properties may be more willing to negotiate to avoid carrying the listing into the typically slower fall season.
Renovation Opportunities: The premium that buyers were willing to pay for renovated properties has decreased from its post-pandemic highs. This trend presents an opportunity to purchase homes that need updating at a better value. Consider properties that offer good bones and a favorable location, even if they require some work.
Financing Considerations: With mortgage rates currently fluctuating, consult with a financial advisor or mortgage broker to understand the best financing options available to you. Locking in a lower rate now could save you significantly over the life of your loan.
Market Knowledge: Always work with a real estate broker who has in-depth knowledge of the Manhattan market and the specific neighborhoods you’re interested in. A specialist can provide insights into building-specific dynamics, upcoming developments, and other factors that can influence your decision.
As we move through the peak of the spring selling season, the Manhattan luxury market continues to demonstrate resilience and opportunity. Sellers should act swiftly to capitalize on the current momentum, while buyers can look forward to potential deals during the summer months. Stay informed, stay strategic, and reach out for personalized advice to make the most of the Manhattan luxury real estate market. Until next week, may your real estate goals and dreams become a realty.
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.
