Homebuyers Continue To Purchase Luxury NYC Apartments

While the coronavirus is canceling public events and sending consumers searching for cleaning supplies as well as food, homebuyers still have an appetite for purchasing luxury apartments in New York City. Olshan Realty Inc. noted in a report, as cited by Bloomberg, that 21 contracts were inked for apartments in Manhattan with a cost of at least $4 million.

Donna Olshan, the brokerage’s president, said per the report that the number of deals came out ahead of the average of 19 for the year’s first 11 weeks. Purchasers, however, moved toward properties that were less costly.

The brokerage wrote in its report, “a combination of low interest rates and falling prices seems to have outweighed the fear and volatility that have led to one of the worst 3-week performances in the history of the stock market. This week could be another story.”

The sole reported contract for over $10 million was for a duplex unit in the Upper East Side neighborhood with a price of $14.5 million, which the brokerage said was under the $15.4 million for which the seller had bought the home in 2016.

The total value of all the luxury contracts was $128.5 million, and sellers reduced their asking prices by an average of 13 percent from their initial prices. The report, however, noted that discounts would probably be greater when the purchases closes and negotiated prices are registered.

In separate news, homebuilders in the United States took in so many orders for houses in January that the market had a surge it hadn’t experienced in years. During the month, home sales rocketed 34 percent, arriving at the highest point for the month as of 2012 per a John Burns Real Estate Consulting survey.

Sales have been steadily on the uptick, and they reached their apex in November of 2019. According to a February report, Rick Palacios Jr., director of research for the real estate consulting firm, said at the time that job growth, consumer confidence, a drop in mortgage rates, and stock market strength could be credited for the rise.