When spring arrives, the real estate market usually gets livelier, but this year in Manhattan, things are different, especially in the luxury sector.
Last week, only 18 contracts were signed for homes priced at $4 million and above. That’s down 31 percent from before and the lowest it’s been this year, according to a report by Olshan Realty.
This isn’t just a one-time thing. It’s part of a bigger trend. Compared to previous years, there’s been a noticeable drop in activity.
Looking back to last year, for example, there were 26 contracts signed during the same week, and in 2021, it was even higher at 47.
The most expensive home sold last week, a condo at 1965 Broadway, had its price cut by $4 million from when it was first listed in 2022. It ended up selling for just under $16 million.
This trend of lowering prices and homes staying on the market longer shows that things are changing. Luxury homes aren’t selling as quickly, and when they do, they’re often at a discount.
In March 2024, Manhattan’s luxury housing market hit a three-year low with only 123 deals for homes priced at $4 million and up. It’s part of a bigger trend where prices are being cut, and it’s taking longer to sell homes.
All these adjustments, along with homes spending an average of 795 days on the market and being sold at an average discount of 16 percent, show that the market is trying to adapt to changes in the economy and what buyers want.
What does this mean for the future? Well, it suggests that the luxury real estate market is changing, and it’s becoming more favorable for buyers.
But even though comprehensive activity is slowing down, there are still times when there’s a surge in deals, like when 25 luxury townhouses were sold in one week in March. This shows that while things might be slowing down, there are still buyers out there ready to make a move.
So, the real estate market in Manhattan’s luxury sector is in a state of change, reacting to different factors like how many homes are available and what buyers are looking for.
