The Pulse - Manhattan Luxury Market 3/19/24

Manhattan's luxury real estate market for properties valued at $4M and over has seen an impressive 35% surge in contracts from the prior week, signaling not just a seasonal uptick but a robust market activity that's been sustaining above-average numbers for the past two months. Welcome to this week's edition of the Pulse, where we dive into the dynamics shaping our market. Here are last week’s key takeaways:

Key Takeaways:

• Notable Uptick in Contracts: There was a significant 31% increase in contracts signed last week compared to the previous week, showcasing robust activity. Despite a 19% decrease compared to the same week last year and a 17% decline this March versus last March, the luxury market has shown above-average contract activity for two consecutive months, indicating a strong interest in Manhattan's luxury real estate.
  
  
• Surge in New Listings: With a 35% increase in new listings over the last week, this March's new listings are nearly matching those of the previous year, with just a slight 2% decrease. This trend suggests we're stepping into an energetic selling season, despite a somewhat diminished activity level from March last year.
  
  
• Condominiums and Downtown Lead: Condominiums continued to dominate with a 74% share of the market, while downtown areas led with a 38% market share last week, maintaining their appeal among luxury buyers.
  
  
• Focus on More Accessible Price Points: A noteworthy 94% of the contracts were for listings under $10M, reflecting a strategic shift in buyer interest towards more attainable luxury segments.
  
  
• Dip in Contract Dollar Volume: Despite an uptick in the number of contracts, there was a 22% decline in contract dollar volume from the previous week, emphasizing the market's focus on properties under $10M.
  
  
• Discount Dynamics: About 29% of contracts were settled at a median discount of 6%, indicating that negotiation remains a significant aspect of the market, offering opportunities for buyers to achieve favorable terms.
• Macroeconomic Watch: The Federal Reserve's upcoming meeting and the current inflation scenario continue to influence the market. It is expected that rates will remain the same until at least June when the first rate cut is predicted. There was a slight decrease in mortgage rates last week to 6.74% however rates still remain higher due to sticky inflation pressures.

Top 2 Contracts: See Photos & Details of all 34 Contracts

New Development Upper West Side- 50 W 66th Street, Unit #41NS: asking $46.75 million. The unit boasts five bedrooms, 5.5 baths, and an expansive 6,942 square feet . One day on the market. 

West Village - 60 Bank Street Townhouse: In the heart of the West Village, this townhouse, with an asking price of $11.5 million, combines historic charm with contemporary luxury over 4,350 square feet. Featuring six bedrooms and 6.5 baths, it offers an unparalleled living experience in one of Manhattan's most desirable neighborhoods, illustrating the market's diversity and depth.

Seller Strategy 

Remember my 4P’s to a Successful Sale

1-Pricing Correctly: It’s imperative to price your home in line with current market trends. A competitive price attracts serious buyers and sets the stage for successful negotiations.

#2-Position Your Home: Ensure your property stands out by highlighting its unique features and benefits. Differentiation is crucial in a crowded market.

#3-Presentation: is everything. Investing in professional staging, along with high-quality photography and video tours, can showcase your home in its best light, making it irresistible to potential buyers.

#4- Plan: A tailored marketing plan is essential for reaching the right audience. Crafting a strategy that leverages both digital and traditional marketing channels can significantly enhance your property's visibility.

Buyer Insights

Act Sooner Rather Than Later: If you encounter a property that fits your needs and aspirations, considering making a move before anticipated shifts in the market can place you ahead of upcoming competition. Early action may lead to negotiating more favorable terms, avoiding the rush of buyers likely to enter the market should rates decrease.

Thinking of Selling or Buying? If you're considering making a move in this dynamic market, reach out for a personalized consultation. Together, we can explore your options and chart a path to your real estate success.

If you found these insights helpful, please share the Pulse with your network. Staying informed on the latest market trends is crucial for navigating the complexities of Manhattan's luxury real estate scene.

PS - Until next week, may your real estate dreams and goals become a reality!