The Manhattan luxury real estate market is showing resiliency at the very top end of the market, though experts aren’t seeing a great deal of depth in that growth. In a recent article on TheRealDeal.com, it was reported that the very high end of the real estate market is where the most impressive growth has been demonstrated. In fact, at that end of the market, there have been price increases, while the other levels of the luxury real estate market have remained comparatively flat.
Real estate experts quoted in the article speculate that the growth at the extreme high end of the market is largely due to the fact that people of the requisite affluence to purchase such properties are relatively insulated from economic shocks. Realtors report that sellers have turned down offers for staggeringly large sums of money. For example, one realtor reports that sellers had declined to take offers that were as high as $12,000 per square foot. The fact that some of these homeowners also happen to own several other homes sometimes translates to a diminished enthusiasm for selling. Not all real estate experts agree on this assessment, however.
The ultra high-end luxury real estate in Manhattan is accepted to be those homes that sell for approximately $20 million or more. Among that segment of the market, record prices have been set and broken. Some realtors do report that there is good activity in the other segments of the market, however, while other realtors report that the middle and lower ends of the luxury real estate market have been flat. The very high prices being paid for the most luxurious homes in Manhattan, however, remain the story of greatest interest.
However much activity realtors report on the various levels of the luxury market, they do seem to agree that those homes that are priced at below $10 million are seeing the most difficulty in terms of sales. Between ultra wealthy individuals not being pressured to sell and homebuyers in the Manhattan luxury market being willing to offer very large sums, the highest levels of market seem poised to fare well. Recent renovations and condominiums are also reported to be selling at a very brisk pace, while homes that have been renovated for a long period of time are reported to be selling at a much less impressive pace, partially due to the difficulties involved in renovating them.