New York’s luxury residential real estate market has it all: the nation’s most expensive listing, stunning penthouses, amenity-rich condos, vintage brownstones, contemporary townhouses and chic, updated condos. day. What he doesn’t have now is certainty. Sales have cooled in the summer (as they always do seasonally) and real estate professionals are anticipating an uncertain decline due to rising interest rates and inflation, coupled with fears of recession.

Despite the current macro-economic conditions, prime real estate in Manhattan and Brooklyn remains a go-to portfolio for talent and industry influencers, as up-and-coming and below-the-line buyers venture more away in hot Brooklyn neighborhoods like Bushwick. and Bay Ridge, and outside of Queens (not yet Staten Island).

It is difficult to predict where the market will go next. Caution abounds. “It’s safe to say that whichever direction the market takes, it won’t be as dramatic as it has been or as dramatic as other markets,” says Sotheby’s International Realty’s Jeremy Stein of the group. Stein. He sees the market as being in neutral territory, and unlike 2021 and early 2022, neither buyers nor sellers are favored. This comes after a 16-month run that ended in May, where “the sales volume was historic and epic,” Stein says. Prime, high-end properties always attract interest: his business represents a 5,919-square-foot penthouse in SoHo’s iconic Romanesque Revival Puck Building; the five-bedroom, five-and-a-half-bathroom penthouse with more than 2,000 square feet of outdoor terraces is listed at $35 million.

“2021 was the biggest year in New York real estate history,” says Pamela Liebman, president and CEO of Corcoran, and not a benchmark year for comparison purposes, she argues ( Liebman is a starring real estate agent in Netflix’s reality skein “Buy My Lodge”). She points out that the city is still above 2019 sales numbers, even though rising mortgage rates are already impacting sales. Liebman has seen an increase in interest-only loans as the luxury segment historically favors cash purchases. “There are still bidding wars where there is a shortage of this type of property,” she notes, and no bargain when it comes to finding the dream apartment in New York. However, bidding wars aren’t the norm across the board: Only 15% of deals in August closed above list price, Liebman says.

“I think people are looking – if they find what they really want, they buy it. If there’s a lot of inventory in a certain price range, they’ll want a deal,” Liebman adds.

Buyers, she argues, can be bold; smart buyers will use their power right now.

She finds that talent is still considering buying in midtown Manhattan, preferably in “a sexy new development.” Penthouses continue to appeal to Los Angeles buyers looking for panoramic views and space to entertain.

“Entertainment-type executives are attracted to high-end downtown condos,” she says. Corcoran represents a three-story triplex penthouse overlooking Central Park at 111 W. 57e. The 7,130-square-foot residence is listed at $66 million in a 60-unit boutique-sized building that ticks all the boxes: full service, plenty of amenities, privacy, views, and security. Condos also appeal to celebrities and other wealthy people more than co-op buildings because financial statements aren’t required and there are fewer rules about renting, Liebman says.

“I think it would be an understatement to say that New York City is back: renters and luxury buyers are going home,” said Carl Gambino of Compass. His experience: There may not be as many bidders on properties, but there is still a ton of activity. Year-to-date, 841 homes priced over $5 million have been sold in Manhattan through August, according to statistics from Compass. These exchanges of luxury and ultra-luxury homes over $5 million and over $10 million rose 35.6% in the first eight months of the year, compared to the same period l last year and into the first eight months of pre-pandemic 2019, notes Gambino.

Exceptionally well-made penthouses and townhouses are always in demand, he explains. It depicts a West Village townhouse, built in 1919 and elegantly remodeled, with five bedrooms and four and a half bathrooms, for $25 million. Jennifer Lawrence is just one of the high profile townhouse owners in nearby West Village. Other names in bold flocked to major Brooklyn enclaves, Brooklyn Heights and Cobble Hill. “Pre-war townhouses are still in favor,” says Abdul Muid, founder and principal of Brooklyn real estate firm Ivey North. “They don’t build any more, so supply is limited,” he notes of the brownstones, which are laden with architectural detail and often on tree-lined, iconic blocks.

“A year ago, if a property was priced on the button or aggressively, I would get emails to check immediately,” he says. Today, requests come in more slowly and buyers wait longer. “Cash buyers are always looking but sometimes waiting for a price reduction,” Muid notes. Inventory is still relatively low. Those looking for value propositions consider the outer edges of Brooklyn with plenty of activity in Flatbush, East Flatbush, and Canarsie. After almost 20 years in the sale of real estate, he is not surprised by market cycles. Ultimately, “buyers want to see more certainty,” he notes.

Flexibility also comes into play in one of the most active segments of the luxury market. Erin Boisson Aries of Douglas Elliman Realty specializes in hotel-branded residences and high-end short-term rentals. The pandemic has highlighted the benefits of a more flexible and nomadic lifestyle. Turnkey and managed hotel residences meet these needs. “Everyone wants to be in New York,” Aries says, but not everyone needs a primary or permanent residence. “These buyers want cocooning, comfort and security,” she adds.

Aries is selling the Ritz-Carlton residences in New York, where more than half of the 16 fully furnished penthouses have sold. Currently, an 1,848-square-foot, two-and-a-half-bedroom bathroom costs $7.2 million. It is rare to find penthouses with a relatively modest area at such a height; it was intentional, says Aries. The residences were designed for those who want to maintain a foothold in the city without the worries and concerns of a typical homeowner. “The Residences are a perfect base and offer extraordinary views with personalized equipment. When you leave, the Ritz staff handles everything,” she says. Another advantage for buyers: the penthouse can enter the rental pool of the Ritz.

The market seems to be accelerating, “We are preparing for a busy fall,” says Aries. Making a splash in the media: Ryan Serhant’s announcement of the $250 million, 17,545 square foot triplex penthouse atop Central Park Tower and 1,416 feet above the city’s tallest residence of the world. Other real estate professionals want Serhant to hit the listing price of around $14,249 per square foot.

Stein of Sotheby’s International expects the “still undervalued” New York market to rebound within a year. “2015 was the high point: we’ll get to that at some point,” Stein says, citing the inherently cyclical nature of residential real estate. “New York is still a real estate target,” he adds. As Corcoran’s Liebman notes, the market is strong: “New York is one of the world’s capitals. People still want to have real estate here.