Homebuyers Take Advantage of NYC’s Weak Luxury Market

Written By Laura Schier | February 28, 2020 | Published in Real Estate Market Trends
2020%2f02%2f28%2f14%2f43%2f48%2f3b7c7346 5fcc 43c2 9340 8eb666f4ec88%2f161 east 16th street 07

As Manhattan’s luxury market continues to weaken, homebuyers are taking advantage of the great deals. A recent industry report showed that 18 contracts were signed on high-end homes in NYC last week, a good performance for sales during the week of President’s Day.

The report classified luxury homes as properties valued at $4 million and over. Out of the 18 homes sold last week, Manhattan saw its highest luxury sale of the year. A penthouse at Madison Square Park Tower, a residence in the Flatiron District, had an asking price of $52 million.

The penthouse, PHAB, is actually two combined apartments with 6 bedrooms, 6.5 bathrooms, and an impressive 13,600 square feet of space. Its next residents can enjoy panoramic views of the Hudson River and Statue of Liberty. The deal also included 2 parking spots, 2 studio apartments for staff on a lower floor in the building, and storage space. Madison Square Tower is a luxury tower featuring amenities such as a fitness center, outdoor terrace, basketball court, and children’s playroom.

The deals throughout Manhattan last week comprised of 13 condos, 3 co-ops, and 2 townhouses. Out of all the contracts signed, the average discount from the original price to last asking price was 18 percent. The average asking price for these apartments was an estimated $9.5 million, the median asking price was around $6.5 million, and the total asking price sales volume for the week was over $171.7 million.

Donna Olshan, who published the industry report, recently stated that “the luxury market is very fragile in the midst of the global coronavirus scare, stock market volatility, and political instability.” Even though last week showed good performance in high-end sales, buyers are still very hesitant to enter the luxury market. According to Olshan, “they have to feel they are getting a good deal to jump in.”

With the recent weakening of Manhattan’s luxury market, there are more great deals than ever for potential homebuyers to find. But as more buyers start to take advantage of the current market, competition may increase in the coming months. Interested in buying a home while you can still find lower prices and have higher negotiating power? Visit the Elegran sales page or contact us today to start your home search.


Mentioned neighborhoods


Blog Archive


This information is not verified for authenticity or accuracy and is not guaranteed and may not reflect all real estate activity in the market. © 2021 REBNY Listing Service, Inc. All rights reserved. RLS IDX Data display by Elegran LLC. IDX information is provided exclusively for consumers’ personal, non- commercial use and that it may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing.

Elegran LLC may or may not be the exclusive listing agent of the properties being displayed on Elegran.com. All data displayed on Elegran.com is presented for informational purposes only and should be independently confirmed by all customers. All Information is compiled from both public and private sources including, but not limited to the RLS, MLS and ACRIS; each of which is assumed to be reliable. All information displayed is subject to errors and omissions regarding apartment specifications and final sale prices, and further, any unit listed may have had its listing withdrawn without notice subsequent to such information being compiled. No representation is made as to the accuracy of any description (ie: listing, close sale data, and/or building description) of any building or individual unit. All measurements and square footage are approximate and all information herein should be confirmed by customer and/or their attorney. Elegran LLC, its members, affiliates, and contributors adhere to New Your City, New York State, and United States Fair Housing Laws.