Manhattan Luxury Market Sees Burst of Activity

Despite volatility on Wall Street, 27 contracts were signed for homes priced at $4 million last week

Manhattan luxury housing just logged its strongest two-week stretch since June, despite growing panic over the fast-spreading coronavirus and volatility on Wall Street.

In total, there were 27 contracts signed for homes priced at $4 million or more in the seven days ending Sunday, bringing the two-week total to 54—the highest that figure’s been since right before new transfer taxes went into effect in the city on July 1, according to the latest roundup from Olshan Realty on Monday.

It’s unclear what’s driving the momentary burst of activity, particularly as jitters mount over the economic fallout from the novel disease. U.S. stocks went into freefall on Monday morning, including a 7% decline in the S&P 500 that triggered a 15-minute halt to trading.

It’s possible that extremely low interest rates are giving the luxury housing market some momentum, noted Donna Olshan, president of Olshan Realty and author of the report.

“The lowest interest rates in 50 years–since Freddie Mac started keeping track in 1971–perhaps outweigh an extremely volatile stock market that has been sliding rapidly off its highs,” she wrote.

Sellers have also steadily lowered asking prices amid a now yearslong slump in the borough’s luxury housing sector. The average home to go into contract last week had a 16% discount off the original asking price, according to the report.

The most expensive deal was a triplex condo at the boutique new development 601 Washington St. in the West Village, asking $19.942 million. The home is just shy of 8,000 square feet with four bedrooms and a large courtyard.

The second biggest deal was for one of the highest apartments at the historic neo-Gothic-style Woolworth Building in Tribeca, which a developer is currently remaking into luxurious apartments. The unit at The Woolworth Tower Residences was asking $19.45 million, a reduction from the original $26.4 million asking price, and comes with four bedrooms and two outdoor terraces.

Source: Beckie Strum, Mansion Global

Filed under: Headlines by Alec Reimon
No Comments »