I had the pleasure of attending the State of the City Expert Panel event at Charlie West, organized by Reuveni Real Estate. It was an informative discussion of today’s market from some of the best in the business. See highlights below, and contact us for what these market trends mean for you.
Highlights from industry expert Donna Olshan, President and owner of Olshan Realty Inc. and author of the widely renowned Olshan Luxury Report, a thorough NYC market update published weekly.
- As of August 4, 2019, the luxury market, defined as contracts signed in Manhattan at $4 million and above is down 17% YOY
- Properties at $4m and above have stayed on the market an average of 471 days in 2019. This is from the official 1st day on the market, and doesn’t take into account “controlled inventory” from developers.
- Properties $4m and above typically have to come down 9% before offers are received and therefore end up about 15-20% off the original ask.
- Since July 1, there have been only 4 properties that have gone to contract on asking prices above $10 million. The 4 properties were all townhouses and 3 out of 4 were Downtown.
- Manhattan pipeline has 11,000 new apartments in downtown alone
- New Development sales are 33% lower YOY during the same period.
- Developers are locked into unrealistic projections.
Current and new trends to watch in the next 12 months
- The place to go for cheap living: Upper East Side
- 2nd Half of 2019 will be better than the 2nd half of 2018
- Increasingly strong rental market (fueled by job growth) equals a decline rental concessions
- $1-3M still moving, motivated by interest rates
- Cost to renovate has gone up 25%, which has moved buyers to new development. The SALT tax was the tipping point.
Technology will now have a huge influence on how brokers communicate, but in the end, we are in the relationship business. Technology empowers that, however it does not replace it. A well versed and trusted broker is important now more than ever, and we are always happy to discuss how to best navigate your NYC real estate journey.
Contact us today!