The Pulse - Manhattan Luxury Market 8/13/24

A Very Unexpected Surge in Manhattan Luxury Contracts: An 85% Turnaround

Welcome to this edition of the Pulse, where I, Carol Staab, provide you with in-depth analysis, insights, and advice on navigating the dynamic Manhattan luxury real estate market! Last week, luxury property contracts in Manhattan experienced an unexpected surge, climbing by 85% and marking a significant upswing in activity. Contracts this August are up by 11% compared to the same period last year. Despite a 50% increase in new listings last week, the numbers remain low, aligning with the seasonal trends of August, and are comparable to last year's figures for the same period.

Market Highlights:

• Contract Dynamics: Condominium sales continued to lead the market with a commanding 75% market share. Downtown Manhattan maintained its stronghold, capturing a 46% market share, but the Upper West Side showed robust performance with a 38% share.
• Discounts and Pricing: There was a notable rise in the number of listings that received discounts, with 46% of properties being discounted. However, the median reduction from the original to the last asking price was only 5%.
• High-End Market: The market for properties priced at $10 million and above was sluggish, with only three contracts signed.
• New Developments: New developments constituted 29% of the market, reflecting a healthy performance.

Macro Market Insights:

The financial markets are on edge, with volatility from last week's fluctuations still present. Upcoming economic data will provide further insights into the state of the economy. Markets currently anticipate a high probability of a rate cut in September. Mortgage rates dipped to their lowest levels in over a year on August 8, due to market reactions to less favorable employment data and financial market volatility. The 30-year fixed rate was at 6.47% on August 8.

Regarding the potential impact of the upcoming presidential election, this time it's different! The primary focus for buyers and sellers is the economy and mortgage rates, with many waiting since summer 2022 for rates to drop.

Top Contracts of the Week: See All 24 Contract Details

#1- The Wales at 1295 Madison Avenue #Penthouse

• Asking Price: $19.5M
• 5 Bedrooms, 5.5 Baths
• 4,179 sq. ft. ($4,666 psf)
• Days on Market: 875

#2- 31 Grove Street Townhouse, West Village

• Asking Price: $15.295M
• 5 Bedrooms, 4.5 Baths
• 4,231 sq. ft. ($3,615 psf)
• Days on Market: 328

Buyer Activity Note:

I have noticed increased interest in my listings, particularly in the entry-level luxury segment, which has been relatively quiet. Three showings were requested recently, even in August, traditionally a slow period. Conversations with fellow brokers confirm that buyer activity is picking up. It seems that buyers reliant on financing are eager to secure deals before the anticipated rate cut in September, positioning themselves ahead of the expected market influx.

Advice for Sellers and Buyers:

• Sellers: Given the uptick in showing activity, it’s wise to keep your listing on the market through August unless you plan to address issues deterring buyers. Reach out for a personalized market analysis and discover how we can position your property for success in this dynamic market.
• Buyers: If you've been eyeing certain properties, now is the time to negotiate a favorable deal before a potential surge of buyers enters the market post-rate drop in September. Contact me today to explore exclusive opportunities and secure your dream property before the market heats up.

Conclusion

The Manhattan luxury real estate market is experiencing a remarkable transformation, with increased activity and strategic opportunities for both buyers and sellers. As we look ahead to potential changes in mortgage rates and market dynamics, staying informed and proactive is key. I am here to guide you through this complex landscape, providing expert advice and insights tailored to your needs. Thanks for your loyal following! If you find the Pulse valuable, please share it.

Until next week, may all your real estate goals and dreams become a realty!