Developers are rushing to cut deals in unoccupied units in the swelling inventory of luxury properties through NYC. According to reports, prices have dropped dramatically, more than they have in the previous four years. The Real Deal stated, on average it took two months longer to sell a luxury unit compared to 2015.
“Olshan said luxury co-ops, which tend to have tougher criteria for ownership and resale, had the steepest drop in contract signings. Contracts fell 25% year-on-year for apartments worth $4 million and up. This showed “a continuing market shift in the luxury market to new condos that offer freedom of ownership, new infrastructure, robust amenities, and some hip architecture — particularly seen downtown,” Olshan said.”
While this trend starts in luxury, it will eventually trickle down to other price points, though the percentage of the drops may not be as steep. Although the future can’t ever be predicted, real estate shifts statistically last for four to seven years.
Considering you’ve been on the fence to change locations within NYC or you’re thinking to transition from a renter to a homeowner, there essentially is no time like the present.
Be sure to speak to a real estate professional from the Alliance Team to help you find your new home!