The Pulse - Manhattan Luxury Market 8/27/24

As the summer market winds down with a 33% drop in contracts last week, August luxury deals have still surged 25% year-over-year, highlighting a resilient market defying seasonal expectations. Welcome to This Week’s Edition of The Pulse!

Key Takeaways from Last Week

• Market Activity: Contracts dropped by 33% compared to the previous week, suggesting the market may be winding down as we approach the end of August. However, this dip doesn't tell the whole story.
• Year-Over-Year Surge: Despite the weekly decline, August contracts surged by 25% compared to last August. This remarkable growth indicates a strong year for luxury real estate, with contracts only 1% lower than the peak years of 2014-2015.
• Condo Dominance: Condominiums continue to lead the market, capturing 63% of all contracts last week. Co-ops followed with a 31% share, maintaining their steady presence in the market.
• Neighborhood Highlights: Downtown Manhattan remains the most sought-after area, accounting for 38% of all contracts. The Upper West Side also showed robust activity, securing a 25% share.
• High-End and New Development Strength:The high-end market, particularly the $10M and over segment, along with new developments, had a strong week. New developments captured a 38% market share, while the $10M and over segment represented 31%. This highlights the ongoing demand for premium properties and new construction in Manhattan’s luxury market.
• Market Pulse Ratio: The ratio of supply to demand is currently at 1.06, down 0.1% from last month and up 1.1 points from this time last year. This indicates that the market is stronger this August compared to last year, underscoring the resilience and continued strength of Manhattan's luxury real estate market.

Top 2 Contracts- See all 16 Contract & photos

#1 - 217 W 57th St, #39B - Central Park Tower

This week’s top contract is located in Central Park Tower, the newest super-tall new development condo on Billionaire’s Row. Unit 39B offers unmatched views and is a testament to the ongoing demand for ultra-luxury living in one of Manhattan’s most iconic locations.

#2 - 12 E 79th St - Historic Townhouse

The second top contract is a historic townhouse located at 12 E 79th St, asking $36M. This 16,000 sq. ft. property on a highly coveted block was listed at $2,250 per square foot and spent 163 days on the market before going into contract. This sale highlights the strong demand for unique, expansive properties in Manhattan's most desirable neighborhoods.

See all 16 contracts from last week for more insight into the current market dynamics.

Real Estate News: 

Curious about who is buying in New York these days. Read this interesting article from the NY Post that includes a study done by Property Shark, a data research firm. " Floridians rank among the top buyers for NYC homes"

My Market Perspective: What It Means to You

This August is acting differently. Not only did contracts surge 25% over last August, but they were also almost identical to the August months of the peak years of 2014 and 2015. What’s behind these numbers? Buyers are coming back to the market earlier than usual, aiming to get ahead of the curve before the rush of buyers enters the market after the expected rate cut in September. Additionally, mortgage rates are now a little below 6.5%, tempting more buyers to come off the sidelines.

I predict that more sellers will list in the fall; however, since inventory is on the lower side now, the increase in inventory will likely have little impact on prices.

For sellers: If you haven’t gotten your property into contract this August yet, now is the time to analyze your pricing and presentation. If your property isn’t attracting offers, it’s often due to pricing. Prepare to take a price correction on September 1 to position your property for a sale. Remember, the fall market is short—running from September through Thanksgiving.

For buyers: If you’re waiting for fresh new listings to hit the market after Labor Day, be ready to act quickly. When those listings arrive, and if you find one you love that is well-priced, don’t underbid and risk losing it. You’ll be facing more competition this fall as more buyers come off the sidelines and enter the market.

Wrap-Up & Final Thoughts

As we move toward the close of summer, it's clear that the Manhattan luxury real estate market is full of unexpected momentum. The 25% surge in August contracts compared to last year is a strong indicator that the market remains robust, even as we head into what is typically a quieter season. Whether you're a buyer looking to capitalize on favorable mortgage rates or a seller aiming to position your property for a successful fall sale, the coming weeks will be crucial.

Remember, the fall market is short and fast-paced. It's essential to be prepared, informed, and ready to act swiftly to make the most of this dynamic period.

Thanks for your loyal folllowing. Forward the Pulse to someone who may find it of value. If you like the Pulse, you may also like my Manhattan real estate advice videos -Carol Staab You Tube . If you have any questions or need personalized advice, don't hesitate to contact me. I'm here to guide you every step of your real estate journey in Manhattan's luxury market.

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