How Is the $10 Million Plus Real Estate Market in Manhattan in 2020?
Current inventory (October 2, 2020) levels are hovering at 530 active units. This is down from 2019 (good), but the key issue in 2020 is the extremely slow rate at which contracts are being signed - Only 8 signed contracts per month on average since January 2020 - excluding April (3 Contracts) and May's (1 Contract) lockdown months - vs 19 on average in January 2019.
There is an oversupply of luxury homes in Manhattan at the moment: 65 months' worth of $10M plus properties on the market waiting to be sold - to be snapped up by an investor or end-user.
Sold & in Contract in 2020
The rate at which $10M+ Penthouses and Townhouses are selling has picked up. Since June 1st, they represent 50-60% of all $10M+ contracts being signed in Manhattan, confirming the statement that due to Covid, those who are choosing to remain in New York, are looking to buy homes that offer private gardens, terraces, and amenities over shared spaces.
$20M Plus?
Homes at or above $20 million represent approximately 20% of all contracts in this analysis.
Where's hot?
Downtown (West Village, Tribeca, Greenwich Village, especially) represented about 45% of all $10M plus contracts and sales signed since June 1st.
Are Sellers Discounting?
For sold properties, discounts off the last asking price, range from 5% to 17+% indicating that buyers are being bold with their offers and some sellers are negotiating into this new reality. In particular, I am seeing higher levels of discounting on new developments vs. re-sales as developers look to offload some inventory that's been languishing since 2016.
Now is the opportune time to dive into the luxury market if you have a longer range timeframe for holding a Manhattan home. Some developers, in particular, are giving steep discounts on their properties. Make New York one of your homes for less than ever before!
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