The Pulse - Manhattan Luxury Market 8/20/24

The $4M+ Manhattan luxury market is defying seasonal expectations with a 19% surge in contracts this August over last year, a remarkable feat for a typically slow month. Welcome to this week’s edition of The Pulse, your go-to source for the latest insights on Manhattan’s $4M and over luxury real estate market. Here’s what you need to know:

Key Takeaways

• Contracts Up 19%: August contracts surged 19% despite the seasonal slowdown and increased by 4% week over week.
• Total Contract Sales Volume: The total contract sales volume was up 40% from the prior week, reaching $196,069,990. This significant increase was driven by the number of high-priced listings going into contract.
• Condo Market Dominance: Condos commanded 88% of the market share, with Downtown leading the charge, while new development took a 44% market share.
• New Listings: New listings increased by 11% from last week, but overall August listings are down 38%, reflecting a cautious seller environment.
• High-End Market: The high-end $10M+ market had an average 16% share.
• Discounted Properties: Six properties saw a median discount of 10.5%.

Market Trends

This week, 25 contracts were signed, marking a 4% increase over the prior week and a 19% surge for August—a significant achievement for a month that typically sees slower activity. Condos continued to dominate, holding 88% of the market share with 17 contracts signed. Downtown Manhattan remained the leader, capturing a 68% market share, while Midtown and the Upper West Side tied with 12% each. New development properties took a significant 44% share of the market, highlighting the ongoing demand for new, high-end units. Meanwhile, the high-end $10M+ market held a steady average share of 16%.

In terms of new listings, they rose by 11% this week compared to last, signaling a slight increase in seller activity despite the traditionally slow summer period. The unexpected increase in listings during what is typically one of the slowest months of the year could suggest that more sellers are gaining confidence and are eager to get a head start before September’s busy selling season. However, it's important to remember that one week’s data doesn’t establish a trend, so we'll need to monitor how this develops. That said, when we compare the entire month to last August, new listings are down by 38%, indicating that sellers may still be approaching this August with greater caution.

Top 2 Contracts of the Week 

#1- 64 University Place #PHB, Greenwich Village- new development condo

• Asking: $20M
• 4 Bedrooms, 4.5 Baths
• 3,972 Sq. Ft.
• $5,035 Per Sq. Ft.

#2- 64 University Place #PHA, Greenwich Village- new development condo

• Asking: $20M
• 3 Bedrooms, 3.5 Baths
• 3,648 Sq. Ft.
• $5,482 Per Sq. Ft.

My Market Perspective

The data from this August reveals a shift in buyer sentiment, highlighted by a 19% surge in contracts despite the traditionally slower summer period. This increase suggests that more buyers are gaining confidence, driven by several key factors.

One of the most significant drivers is the current dip in mortgage rates, with many buyers anticipating a near-certain Fed rate cut in September. This positive outlook is prompting buyers to act now rather than delay, especially since mortgage rates are currently lower than they were at this time last year. Additionally, the stock market’s recovery from its earlier sell-off has restored a sense of financial stability among potential buyers. This renewed confidence is motivating more high-net-worth individuals to re-enter the market, eager to secure properties before rates rise again or competition intensifies in the fall.

On the seller side, the increase in new listings, even during what is typically the slowest time of the year, suggests a strategic approach. Some sellers are listing early to get ahead of the September listing curve, aiming to capture the attention of buyers who are ready to make decisions now. This combination of buyer confidence and strategic early listings is creating a more dynamic market than usual for August, offering unique opportunities for both buyers and sellers to achieve their real estate goals.

Advice for Sellers

As we approach September, consider your strategy carefully. The traditional fall rush is just around the corner, and being prepared with a strong plan will be key to your success in the market. If you’re considering listing your property, let’s discuss how we can maximize your results in this dynamic market.

Advice for Buyers

If you’re eyeing a property that’s been on the market for over 100 days, now could be the ideal time to act. Sellers may be more open to negotiations, and with more buyers likely to enter the market in September, you’ll want to move quickly. Let’s connect and explore your options together.

Conclusion

As August continues to surprise with strong activity in the Manhattan luxury market, it’s clear that both buyers and sellers have unique opportunities in this current landscape. With a 19% increase in contracts this August over last year, the resilience of the market is evident. However, staying informed and strategic is crucial in this ever-changing, complex world of Manhattan luxury real estate.

I’d love to hear your thoughts on this week’s report. If you have any real estate questions or need guidance, please don’t hesitate to reach out. Share The Pulse with others who might find it valuable, and check out my latest advice videos on Carol Staab You Tube

Until next week, may your real estate goals and dreams become a reality.