Enough waiting, Manhattan’s rich return to luxury market – ‘new normal’ high rates accepted as sales rise 3.7%
Benzinga and Yahoo Finance LLC may earn a commission or revenue on some items via the links below.
Manhattan’s luxury real estate market saw a surge in activity at the end of the year, driven by a confluence of factors.
Affluent buyers, previously hesitant due to rising interest rates, have re-entered the market, buoyed by gains in the stock market and the outcome of the presidential election.
According to a report by Douglas Elliman, sale of luxury apartments in Manhattanwhich represents the top 10% of co-op and apartment transactions, grew by 3.7% year-over-year in the fourth quarter. However, the total number of luxury deals fell 10.7% compared to the previous quarter, likely due to a temporary drop in mortgage rates during the period.
Don’t miss:
The recent surge in luxury sales in the third and fourth quarters suggests buyers have “accepted the new normal” of higher interest rates, according to Leonard Steinberg of Compass, who released a market report on Friday.
However, activity in the luxury market remained somewhat volatile during the fourth quarter, as evidenced by the weekly Olshan Report, Frederick Warburg Peters, chairman emeritus of Coldwell Banker Warburg, noted in his report.
According to the Peters report, weekly sales of homes priced at $4 million or more ranged between 19 and 39 deals, with the two most active weeks occurring during the fourth quarter.
See also: Commercial real estate has historically outperformed the stock market, and this platform allows individuals to invest in commercial real estate with as little as $5,000 offering a target return of 12% with a bonus 1% increase in returns today!
“As was evident with the stock market rally, the Republican winner calmed financial nerves, at least for now, clearly signaling the return of an era of reduced regulation and taxation for the wealthy,” Peters said.
Manhattan’s luxury real estate market saw significant growth in the fourth quarter. According to Douglas Elliman, the median sales prices increased by 6.5% annually and 13.3% quarterlyreaching $6.525 million.
The increase can be attributed to several factors.
“Inventory is tighter, and equity markets are up — significantly worse — in some cases 30% higher than they were in 2019,” Compass broker Daniel Blatman said in the firm’s report. “Customers are wealthier and they’ve been sitting on their money, ready to participate. Now they’re engaged.”
