Manhattan Real Estate Market Insanity

No time to blog today because I’ve been insanely busy with clients and Triathlon training (and thank all of you so much who have taken the time to generously donate to this cause!!!).  Mostly the former!  The market continues to buck national housing market trends as the ultra luxury market finds buyers who have money to burn:

  • Stories are swirling of Charles Schwab paying $27M for a property at 834 Fifth Avenue that was listed at $16M ($11 million OVER THE ASK!!!!)
  • Also hearing scuttlebutt about an $11M property at 1125 Fifth that has gone to contract at $17M.
  • And of course there were my buyers who were gazumped last week by a buyer offering $18M or $1.3M over our contract price.

I’m also witnessing first hand buyer frustration at the inability to find the "right" home in price ranges from $1M to $5M.  The market below $1M seems a little bit quieter but not much.

My professional observation…

Aside from the fact that those purchasing homes in the $10M and up range have considerably more cash than most (that’s all relative of course with some having "more" than others), I see the higher end buyer psychology as being significantly different than the rest of the market.  The ultra lux buyer sees a home purchase as a roof over their head and a place to call home and is less inclined to view the purchase as an "investment" per se.  That said, regardless of someone’s wealth, no one I have met in my 15 years wants to lose money.  Whatever it is, the ultra lux buyers are snapping property up like hot cakes in Manhattan showing that those with big money either have great faith in the strength of our local economy and real estate market, or they just don’t care.  Again, I think it’s the former. 

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