While many will agree that 2016 was not the best year for Manhattan’s luxury home sellers, as demand waned amid political and economic uncertainty while a flood of new condos hit the market, 2017 seems to be getting off to a promising start—at least in terms of sales.
So far, 50 contracts (26 is the first week and 24 in the second) have been signed at $4 million and above, tying 2014 as the best start of a new year since Olshan Realty started keeping score 11 years ago. This follows a year where the number of high-end sales were 18% lower than in 2015.
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Now, however, mounting data showing that sellers are becoming more realistic on pricing (including Olshan’s finding that the average discount from original to last asking price was 11% for properties that went into contract last week) and a better performing stock market appear to be doing the trick, encouraging potential buyers to take the plunge in the first two weeks of this year.
Of the 24 contracts signed last week, the No.1 contract was a 5,503-square-foot, five-bedroom penthouse at 10 Sullivan in SoHo, asking $27.5 million. Bloomberg has reported that the contract price was even lower at $25 million.
The condo was originally part of an 8,400 square foot property that co-developers Property Markets Group and Madison Equities were trying to offload for $45 million but later split into apartments after failing to find a buyer. (The other penthouse has 2,950 square feet of space and three bedrooms and is still on the market, asking $10 million.)
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The No. 2 contract was a townhouse at 132 East 71st St. in Lenox Hill on the Upper East Side, asking $21 million, reduced from $25 million when it went on the market in September 2014. This six-story house has 9,000 square feet of space including six bedrooms, six bathrooms, and an elevator. It was held in the same family for 90 years and is in need of renovation.