Is now the time to upgrade and an opportunity to invest in real estate in Manhattan?
Prices have been trickling down over the two quarters while mortgage rates are still low in NY real estate. Forget the asking price, just make an offer. The inventory of luxury homes has been rising faster than the continuing growth in demand. At this point many of the sellers are long-term holders trying to catch what they perceive as the top of the market resulting in a softening of the market. Hudson Yard, the world’s largest development project, and many other new developments are coming on line, which is already being factored, into the market.
There is still a strong demand from foreign wealthy investors specifically from Russia, China and Europe. I continue to see a lot of interest from Asian buyers. However, according to the Business Insider, Wall Street jobs are being spread out to different addresses around the globe to avoid higher office costs. It’s also an election year and with the uncertainty, buyers are going to become extra cautious and hence sellers are less reluctant to go down in price.
Prices are softening across the market. For example one the most desirable buildings is The Sheffield, a residence I myself have had the pleasure of living in at 322 West 57th Street, currently has twenty-nine units for sale. Out of these twenty-nine, eighteen have had price reductions in recent weeks.
Even luxurious residences in prime locations are currently having difficulty getting their asking prices. An eight-room unit at 15 Central Park West recently had its price dropped by $4.5 million. It is rare to find residence at this address with marked down prices. However, with eleven of them on the market, four of them have had their prices marked down. It looks like now there a buyer’s paradise in the city, and this window of opportunity may close as inventory clears.