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Luxury Real Estate in New York Continues to Fly High with Multimillion Dollar Sales

Despite the summer, purchases of over $4 million have continued, and in Miami prices for rentals also skyrocket

Times Square, March 28, 2020. Photo: Terry W. Sanders

Every week we hear of multi-million-dollar properties going on the market and sometimes the asking price seems exorbitant, and it really is!

With this report we will take a closer look at the numbers of the Manhattan Luxury Real Estate Market, giving you the opportunity to get an idea of what the actual selling price of these luxurious properties is.

First of all, when we talk about luxury real estate in Manhattan, we refer to properties sold for 4 million dollars and above. In July 2021, there were 151 properties sold, 64 less than the previous month.

However, a decrease that shouldn’t sound alarming, as this sector (and the market in general) has been recovering for several months now. Figure that 38 properties were sold in January, 72 in March, 126 in April. Thus, the number of sales having dropped in July is probably the result of seasonality and a market settling down.

Also, down slightly from June 2021 was the Average Sale Price, down 2.9% to $7,884,159, and the Median Price, down 4.9% to $5,895,000.

Demand is present and alive, and the negotiability factor confirms this, i.e., the difference between the last asking price and the actual sale price, which was 4.53%, confirming the declining trend of previous months: 6.73% in June, 11.91% in April, and 14.32% in January. The same applies to Days on Market, or, the number of days a property stays on the market from the moment it is listed for sale, which in July 2021 averaged 179, down from 193 in June, 203 in April, and 267 in January.

The lower negotiability and the decline in days needed to sell indicate two significant trends: increased demand and a market’s pace that is picking up (although inventory is still plentiful).

It is a more balanced luxury market, and it follows the trend of the whole Manhattan real estate market, which is experiencing a solid upswing in negotiations, as confirmed by the 109% year-on-year increase in the number of preliminary contracts signed for new construction properties.

Newcomers drive the rent hikes in South Florida

Interest in relocating to Miami has tripled since last year and now ranks higher than any other destination in the U.S., according to a new report from real estate website Redfin.com, based on a sample of about 2 million users who searched for homes across 112 metro areas.

It is the first time ever that Miami topped Redfin’s monthly rankings, which measures net inflow from other metro areas. However, Miami has been consistently in the top 10 since the list was created in 2017.

An interest confirmed by the huge increase in demand from newcomers that led to massive rent hikes, up as much as 24% in some areas.

But why move to South Florida to overpay the rent? It must be said that a good part of these newcomers is still working remotely and local rents are cheap compared with what they are used to shelling out in New York or California. Bad news indeed for the locals, squeezed out from the market by their newcomer counterparts. The median annual income for a single earner in Florida is $52,534, below New York’s $59,956 and California’s $62,171.

Rental demand is also driven in part by residents who are priced out of homebuying. The median home price in the region reached $500,000 in June, a nearly 30% jump year-over-year.

(source: therealdeal.com, thenextmiami.com)

 

 

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