AgentMarkets & Economy

Is the Manhattan luxury market cooling?

The deepest pockets aren’t buying at the swiftest pace, reports show
  • At the close of 2015, Olshan Realty reported a two-month increase in days on the market for luxury properties.
  • In the first week of April, just 18 contracts above $4 million were signed – the lowest of that same week since 2012.
  • The median resale price in Manhattan grew 3.8 percent last year to $978,765, but within the luxury tier (top 10 percent), median resale price went up just 0.2 percent.
  • Pockets like East Brooklyn and Upper Manhattan are still competitive markets for buyers.

Douglas Elliman Slow and steady is becoming a trend with big budget buyers in the New York City real estate market -- a side effect of an overly congested market. Is the market headed for trouble because sales growth isn't hitting double-digits anymore, or is tapering at the top normal after years of unsustainable sales growth? "Demand is there, I see it everyday," said Raphael De Niro, real estate broker and head of The De Niro Team for Douglas Elliman. "The problem is supply. There’s too much supply and it can’t be absorbed in this cycle." Douglas Elliman's Q1 report for Manhattan, prepared in conjunction with Miller Samuel, shows listing inventory increased 9.1 percent last quarter and 5 percent year-over-year, reaching 5,506 homes on the market in the first quarter. Christie's International Luxury Defined report says over 6,500 units flooded the New York City real estate market in 2015, the largest supply since the financial downturn. Many of those units fell...