Luxury $4M & Over Manhattan Contracts Drop 29% From Prior Week’s High Numbers! Despite a sharp 29% drop in luxury $4M & over Manhattan contracts, the market’s resilience shines through, soaring 10% above the critical benchmark for a thriving market.
Welcome to this week’s Pulse luxury $4M & over report. Here's what you need to know!
Market Highlights:
- Contracts Signed: 22 contracts were signed last week, marking a 29% drop from the 31 contracts signed the week prior. Despite the 4th of July typically being a slow week, this number is 10% above the benchmark needed for a healthy market.
- 30-Day Trends: The last 30 days of contracts saw a 14.9% increase from last month and a 7.4% rise from last year.
New Listings:
- Only 17 new listings came to market last week, representing a significant 60% drop from the prior week.
- Active listings are down 36% from the past month and 5.5% from this time last year, strengthening the market pulse.
Market Pulse:
- The Market Pulse, a measure of market strength, stands at 0.45, up 0.5 points from last month and 0.2 points from last year. The market is increasingly favoring sellers as more contracts are signed due to realistic pricing by sellers.
Market Segmentation:
- Condos: Condos led the market with a 64% share.
- Downtown Dominance: Downtown continues to dominate with a 46% market share.
- Ultra High-End: The $10M and over segment captured an 18% market share.
- New Development: New developments had a 36% market share.
- Discounted Contracts: 8 contracts received discounts, averaging 8.5%.
Q2 Luxury Market Overview:
- Sales & Inventory: The luxury market mirrored the overall market with a 12.4% increase in sales and a 22.4% jump in inventory.
- Price Trends: Median prices for luxury homes fell 10.5% year-over-year, while the price per square foot dropped 4%.
- Financing: Notably, the number of buyers using financing increased, resulting in a 12.2% rise in annual sales for Q2. Buyers are moving ahead with purchases rather than waiting for rate cuts.
Macro Economic & Geo-Political News:
- Economic Update: The latest jobs report has spurred investors to bet on a September Fed rate cut. Fed officials have indicated that a notable weakening in the labor market could prompt rate cuts.
- Geo-Political Update: The Trump lead after the presidential debate has financial markets preparing for a possible increase in inflation numbers.
#1- 184 E 75 Townhouse - Asking $13.95M, 5 bedrooms, 4.5 baths, 6,000 sq. ft., $2,325 psf, renovated, 259 days on market.
#2- 201 E 74 #23 - New development condo asking $12.5M, 5 bedrooms, 4.5 baths, $3,276 psf.
Seller & Buyer Advice:
- Sellers: The slow season appears delayed. Precise pricing remains key as sellers adapt to market conditions. If you haven’t secured a deal yet, now is the time. Adapt your pricing and market your property effectively to take advantage of current conditions.
- Buyers: For those waiting for rates to fall, consider following the trend from Q2—buy now to secure better prices and avoid increased competition when rates drop. Consider moving forward with your purchase to secure favorable prices before competition intensifies.
Conclusion:
The luxury Manhattan real estate market remains dynamic and nuanced. Sellers should continue to adjust their pricing strategies to align with market realities, while buyers might benefit from acting now rather than later. Stay informed and seize the opportunities this market presents. Stay tuned for more updates and insights in our next Pulse report!
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Thank you for reading this week’s Pulse. Stay tuned for more updates and insights! Until next week, may your real estate dreams and goals become a reality.
