Only 13 homes valued at $4 million and above entered into contract last week in Manhattan, the lowest number for the final week of January since 2010, according to Olshan Realty’s weekly report released Monday.
The high-end segment started off 2017 with a much more buoyant tone. In the first week, 26 contracts at $4million-and-above were signed, followed by 24 and 18 contracts in the ensuing two weeks.
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Ironically, the stock market saw a strong rally last week, with the Dow Jones Industrial Average surpassing the 20,000-point mark. But the so-called "wealth effect" didn’t spread to luxury homes, according to Donna Olshan, president of the eponymous brokerage Olshan Realty.
"The market is struggling with price resistance," Ms. Olshan told Mansion Global. "Fundamentally, there are too many overpriced high-end products. The buyers are really looking at the prices carefully," she said.
"In order for the market to move, a lot of properties have to reduce prices," she continued. For this reason, the luxury market is going to see some good weeks and some bad ones throughout the year, she said.
The most expensive unit that went into contract last week was 37A at 432 Park Avenue, asking $17.75 million. The 4,003-square-foot apartment includes three bedrooms and four-and-a-half bathrooms. The Rafael Vinoly-designed condominium tower, the tallest in the western hemisphere, offers such amenities as a 75-foot swimming pool, residents-only restaurant, a children’s playroom and a fitness center.
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In 2016, seven contracts in this building landed at the No. 1 spot in Olshan’s weekly report, but closed sales were on average 12% lower than asking prices.
Last week’s second most expensive home was Duplex 3 at 155 East 79th St., asking $12.8 million. The 4,292-square-foot duplex has four bedrooms and four-and-a-half bathrooms in a new building designed by BKSK architects. The unit last changed hands for $11,200,750 in February 2016.
Separately, a report published Monday by The Real Estate Board of New York showed the average sales price for a condominium in Manhattan reached $2.963 million in the final quarter of 2016, a 36% year-over-year increase.
The record price was largely boosted by sales in the luxury segment, including 15 sales at 432 Park Avenue in the fourth quarter, with an average price of $23.6 million, according to the report.