In the middle of February, Manhattan saw 37 contracts signed in one week at $4 million or above. That’s the most active week in the luxury market we’ve seen since May 2017. Things are looking up after January, which was an all time low.
I’m hoping the market is coming back. Maybe it has corrected itself, settled in sales above the $10 to $15 million mark. Sellers have adjusted expectations. As developers unload their inventory the market picks up.
What’s interesting is that in the past few weeks we have also seen the stock market rocky, going down, while interest rates are headed up. Most would take these as bad signs for the sales market. But the crowd purchasing luxury apartments in New York City seems not to be affected by these markers. Some buyers are just waiting, and no one wants to overpay. But where does waiting end? If a price has dropped from $14 million to $11.2 million are you waiting for $11.1 million? People lose deals over 1 percent but the deal is not in walking away with that final dirt cheap bargain. That’s not what it’s about. If you are looking for a home for you and your family, there has to be a line. People will linger for the final buyers’ market pricing and lose out.
Now is the time to make a move before spring momentum. The prices are good, and the developers are negotiating. Sponsor units in new condominiums accounted for 22 of the 37 sales in that peak week in February. This is also a great opportunity for foreigners where the dollar is weakening. I’m not sure when there will be this amount of choice in the market for the buyer again, with this level of very high-end buildings recently completed.