The luxury real estate market in Manhattan put on a strong performance in 2024, and the sector is forecasted to maintain its positive momentum this year, according to new reports.
The Big Apple made an epic comeback in the fourth quarter to beat the odds, including a polarizing presidential election, high interest rates, and low inventory levels. In fact, many of the New York City borough's best real estate market moments happened in the final months of the year.
More from Robb Report
-
A 435-Acre Equestrian Estate in Virginia's Scenic Hunt Country Region Is Headed to Auction
-
Inside a $58 Million Clifftop Estate in Malibu With a Private Staircase to Big Dume Beach
-
Eccentric Billionaire Howard Hughes' Former Miami Property Lists for a Cool $55.5 Million
For example, there was a whopping 58.3 percent uptick in sales of properties in the $20 million and above price category, Compass noted in its Q4 report. In addition, deals worth $5 million and above accounted for 10.4 percent of all the contracts signed that quarter. At the same time, the average price of contracts set a new record for Q4, jumping a staggering 20.6 percent to $2.48 million, or $1,677 per square foot.
"There are two big differences in today's sales market: Inventory is tighter, and equities markets are up—way up—in some instances 30 percent higher than they were in 2019," explained Compass agent Brian K. Lewis in regards to the findings. "Buyers are wealthier and have been sitting on their money, ready to engage. They are now engaging. These differences are serving the luxury home market."
Looking at the months ahead, there are plenty of reasons to remain optimistic. Bess Freedman, CEO of Brown Harris Stevens, is confident that Manhattan's current levels of supply are enough to keep prices stable and foresees buyers benefitting from higher Wall Street bonuses, according to the firm's 2024 market report . Frederick Warburg Peters, president emeritus of Coldwell Banker Warburg, is hopeful as well, with 2025 expected to usher in slower price growth and more would-be buyers.
"Prices have stabilized, and by and large, sellers are either entering the market at more realistic numbers or revising the overly ambitious prices at which they began," Peters wrote . "The pace of sales, while still erratic from market to market and month to month, has grown stronger over the second half of the year."
However, if there's anything to be concerned about, Freedman pointed out the potential for fewer Federal Reserve interest rate cuts in 2025, in addition to inflation coming back into focus and high mortgage rates for homebuyers.
Best of Robb Report
Sign up for RobbReports's Newsletter . For the latest news, follow us on Facebook , Twitter , and Instagram .
