Has the rose lost its bloom when it comes to the luxury real estate market? All indications point to the market softening, but prices continue to hold steady. On top of all that, the new Treasury LLC disclosure ruling threatens to slow down the velocity of the high-end market.
In a chat with Bloomberg, Compass president Leonard Steinberg and Oppenheimer Funds executive Krishna Memani offered their take on the direction of the slowing market, where luxury properties are staying on the market much longer and sales volume has dipped.
While the luxury market hasn’t gone bust, there has been a reality check on prices for sellers with “unrealistic” and “crazy prices,” Steinberg said. He noted that price adjustments are reaching various levels in the high-end market.
Memani said the strength of the real estate market will partly depend on millennials, currently living at home, moving out and getting their own homes. Steinberg said millennials are looking for homes under $3 million.
The pair also discussed the recent federal effort to identify the people buying Manhattan properties anonymously through limited liability corporations. The Compass broker doesn’t believe it will make a ripple with well-heeled buyers.
“I think it will be so fractional as to be insignificant entirely,” he said. [Bloomberg] — Dusica Sue Malesevic