While some are skeptical that the return of Wall Street bonuses could do much to change the Manhattan residential market, Wall Street Journal reporter Dawn Wotapka said that luxury brokers are starting to see more interest in open houses for high-end listings. “Real estate brokers in Manhattan are really excited this year,” Wotapka said. Even so, she said that the luxury spending culture is different from past boom years. “It’s the age of the quiet bonus — you don’t want to come up in the Porsche you don’t want to come up in the Tiffany watch.”

The luxury home market continued to take a pounding in the second
quarter of the year, while the low-end market showed signs of
stabilizing, according to second-quarter Manhattan market reports
released today by several real estate firms. Halstead Property reported an 82 percent decline in closings over $10
million during the second quarter, compared to the same time last year. Diane Ramirez, president of Halstead, said that potential buyers in the
luxury market have been hesitant about purchasing homes and are waiting
for the economy to improve. “There’s been a good deal of hesitancy on the purchasing of larger
apartments, and I think that’s partly due to the impact of this
recession and of job losses,” Ramirez said. “There are more concerns
for higher-earning persons than in previous recessions.” [more]