The New York City luxury real estate has seen some unusual changes in the market this year. The luxury part of the market for instance has slowed down while the lower end and resale market have gone quite high.
According to Jonathan Miller of the Miller Samuel appraisal firm, the market can be divided in to 3 parts and that ‘the further down in price you go, the more intense the demand is’. According to Miller, the presence and sale of the luxury developments has gone down with only an increase of 8% of sales from last year. The units available in the market are relatively low as most developers are opting to keep the new buildings away from the market.
Despite the development of about 5,500 units last year, most luxurious apartments are lacking from the market. According to Miller, there has been a decline in the listings by about 44%. The average price of new buildings is now higher by 60% when compared to last year’s price but the comparison is not accurate since last year at such a time, more contracts were being signed.
The resale part of the market reflects the opposite of the high end market as most buyers went for lower priced units. Douglas Elliman’s report showed that the resale was growing strong and after the report, there was a 7.3% increase in the median resale prices compared to last year. The price reached an average of $950,000.
Andrew Heiberger the Chief Executive of Town Residential commented on the success of the resale market and said, “The real sellers have made adjustment to what was unrealistic pricing,” and that this move is most likely to be picked by other developers who have had their homes on the market for long.
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