Flashy projects like One57 making NYC sellers greedy

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Hefty selling prices for units in splashy new projects like One57 is giving sellers unrealistic expectations about what the market will bear.

A 10-room penthouse sold for $88 million in 2011 to Russian billionaire Dmitry Rybolovlev represented a then-record $13,000 per square foot price,

“That really wasn’t a fair (comparable price)” to value a unit with, Richard Steinberg, a New York City broker, told the New York Times of Rybolovlev’s purchase. “But, unfortunately, every seller of every co-op and every condo in the city started using that as their base line.”

More than half (56 percent) of the homes priced at more than $3 million — about 10 percent of the market — have seen price reductions since January 2012, and in the third quarter homes in that price tier had three times the inventory of all others, according to appraisal firm Miller Samuel.

Source: New York Times