From left, Neil Binder, Wolf Jakubowski and Jonathan Miller
From the November issue: The beleaguered luxury real estate market in New York is beginning to show some positive signs, but there is expected to be a lot of stumbling along the path to recovery. The high-end market here has been harder hit in terms of both price drops and activity than any other sector, and there’s still a sense of nervousness among many about buying multimillion-dollar properties. However, in this month’s Q & A, The Real Deal talked to market analysts, top luxury brokers and heads of firms who said that while there is still a lot of caution, they are beginning to see a mild increase in activity in Manhattan’s most exclusive property trades. Within the last two months, some say they have noticed an increase in buyers, who for the first time in the last year are not convinced that prices will continue to go down. But sales are still way off, and one analyst disputed the notion that prices are going to head back up anytime soon, saying “inventory is still grossly overpriced for the current conditions.” Meanwhile, many of the transactions that have taken place are from all-cash buyers who are paying lower prices, or from buyers who are putting in at least half of the cash needed to finance the purchase. That means the jumbo mortgages that drive the segment are still not getting easier to obtain — a reality that does not bode well for the sector in the near future. And many of those interviewed said sellers are still not dropping their prices to the levels they need to be at to lure buyers. They said the $2.6 million to $5 million range and the $10 million to $20 million range have suffered most. For more on what’s going on, which areas of Manhattan have seen the largest drops in the luxury sector and which ones are holding stronger, we turn to our panel of experts.
