Leonard Steinberg, managing director at Prudential Douglas Elliman From the March issue:
It’s not your average buyer who can afford a Manhattan townhouse during the good times. And now, because the wealthy have been hit hard by the downturn and have less purchasing power, the pool of townhouse buyers has shrunk even more.
This month, The Real Deal talked to analysts and townhouse brokers about how one of the most specialized residential sectors of the luxury market (a market that has suffered severely since the downturn started) is holding up. According to one report, townhouses have seen an average sale price drop of 32 percent over the past year.
Some townhouses have seen even greater declines. One broker cited 16 West 12th Street, which was listed for $25 million and ultimately sold for 40 percent less, at $15 million.
Despite those price cuts, another broker said townhouses are still the most overpriced sector of the residential market, joking that there should be a tour called “Overpriced Townhouses in the 70s.”
For more on what kinds of homes are faring best and worst and who is still in the market to buy, we turn to our panel of experts.
