The Pulse - Manhattan Luxury Market 4/15/24
Pulse
Pulse
Is the tide turning in Manhattan's luxury real estate market? For the first time since a sluggish start to the year, the number of luxury contracts signed in Manhattan dipped below 20—a key benchmark for market health. Welcome to this week's edition of the Pulse! Before we delve into the specifics, I'm thrilled to share an exciting development: I have joined Sotheby's International Realty as a Global Real Estate Advisor and Associate Broker. This strategic move enhances the breadth and depth of services I can offer you, leveraging Sotheby's unparalleled global network to ensure your real estate ventures are more seamless and expansive than ever.
Last week, the Manhattan luxury real estate landscape revealed critical insights:
Contracts Signed: Only 17 contracts were signed last week, echoing the quiet start of January. Potential reasons include concerns about the Federal Reserve delaying interest rate cuts and rising geopolitical tensions in the Middle East, which may have shaken buyer confidence. Despite this week's drop, it's crucial to note that luxury contracts are up 21% this April compared to last year. Remember, a single week's performance does not define the market.
Inventory: New listings saw a decrease of 29% from the previous week, yet they are up 33% this April. The increase in inventory has not weakened the market; rather, it has kept pace with the uptick in signed contracts.
Market Pulse: The sub-$10M market segment shows a seller's advantage, up 241% year to date. Conversely, the above $10M market, up 33% year to date, is slightly more buyer-friendly.
Property Types & Neighborhoods: Condominiums continue to dominate, claiming a 71% market share. Geographically, Downtown led with a 35% share, followed closely by the Upper West Side at 29%.
Macro Factors: The Core Consumer Price Index's unexpected rise suggests prolonged high interest rates, potentially influencing upcoming Federal Reserve decisions. Stock market fluctuations, heightened by Middle East tensions, are likely to persist, impacting market sentiments.
#1- 1965 Broadway #PH3BC: A spacious 6-bedroom condo, asking $15.995M. This unit, featuring expansive views and luxurious amenities, spent just 23 days on the market.
#2- 250 W 86th Street: This multifamily townhouse with commercial space listed at $14.995M remained on the market for 80 days.
Sellers: Despite a quieter week, April's performance remains strong. Employ precision pricing and robust marketing strategies to achieve successful sales, especially before the traditional slowdown pre-presidential election. Thinking of selling your home this spring or have a home that failed to sell? Let's position your property effectively in this competitive market. Contact me for advice on the best marketing strategy to get your Manhattan home sold.
Buyers: The Upper East Side is witnessing a resurgence, particularly appealing to families seeking spacious, amenity-rich living. The neighborhood's allure is only set to grow, making it a prime spot for potential homeowners. Discover the potential of the Upper East Side and other rising neighborhoods by scheduling a consultation.
While fluctuations are inherent to real estate, the underlying strength of Manhattan's luxury market persists. As we navigate these dynamic times, understanding and adapting to market trends is key. Stay informed and ahead of market trends—reach out for detailed custom reports and tailored advice. Until next time, may your real estate goals and dreams become a reality!
Carol Staab has an innovative luxury real estate practice that provides an elite level of concierge service through unparalleled world-class marketing and a hands-on business approach. Her mission is to give her clients an exceptional experience while helping them achieve the best results possible.
