Olshan Realty President Donna Olshan pointed to stock market issues as the main reason for the slow week.
“The S&P 500 is down 11 over the past 12 weeks. … It’s just a punch in the stomach,” she said, noting that for many potential luxury buyers, “their value net is very strongly tied to the stock market.”
Bids last week were worth around $101 million in total, and the median asking price was around $5.3 million. The average discount between their initial price and their most recent ask price was 6%, and they spent an average of 446 days on the market.
The most expensive deal last week was for a condo at 15 Central Park West asking for $26 million. The three-bedroom unit is 3,105 square feet and the seller bought it for $30 million in 2014.
The second highest transaction was for a condo at 155 W. 11th St. with an asking price of $15 million. The three-bedroom unit is around 2,500 square feet and the seller bought it for around $11.3 million in 2017.
Overall, last week’s sales were split between nine condos, two townhouses and a co-op. Other notable deals included a co-op at 14 Harrison St. which had an asking price of around $5.5 million and a townhouse at 226 E. 49th St. with an asking price of $10.5 million .
Manhattan averaged 12 luxury contracts per week in 2020 when Covid first upended life in the city, but activity increased dramatically in 2021, setting records of 1,877 contracts signed worth by nearly $16 billion, thanks to factors such as a strong stock market, lower prices and low interest rates. The borough saw 36 luxury contracts signed per week on average last year.
Signs of a slowdown began to appear earlier this year when contracts signed fell to 23 per week in mid-May, the lowest total since the start of the year and below the weekly average of 26 from 2013 to 2015, which were strong years. for a new development in the city. However, this largely represented a return to normal activity levels after the 2021 highs, and it is “far too early to tell” whether a return to 12 weekly deals will be the new normal going forward, said Olshan.
While it’s hard to empirically link stock market activity to the New York luxury real estate market, it makes sense that people are more willing to spend lavishly on a new home when they feel better about their financial portfolio, said Jonathan Miller, CEO of valuation firm Miller Samuel. The stock market, however, is far from the only problem driving the slowdown, he said.
“Luxury market weakness has been slow to come over the past couple of months with the escalation of war, the idea that inflation is not as transitory as everyone thought,” a- he declared. “There is nothing a real estate market hates more than uncertainty.”