Luxury market takes a dive, lower-end stabilizes

TRD New York /
Jul.July 01, 2009 09:51 PM

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.”

According to the Corcoran Group’s report, luxury resale co-ops fared better than condos, with median prices for co-ops falling 6 percent. Luxury resale condos saw a 22 percent decline in median price. In the luxury market, high-end new developments suffered the most with a 27 percent decline in median price.

However, the lower-end of the market, marked by studios and one-bedrooms, seems to be leveling out.

According to Prudential Douglas Elliman’s report, which is prepared by appraisal firm Miller Samuel, all Manhattan studios and one-bedroom apartments saw less severe price cuts than larger units between April and June.

Median prices for studios fell 15.6 percent from the prior year in the same quarter, and one-bedroom median prices fell 16.6 percent. Meanwhile, on the pricier end, two-, three- and four-bedroom apartments all saw median price declines exceeding 20 percent. The median price for four-bedroom apartments fell a dramatic 46.7 percent from the previous year to $3.92 million from $7.35 million.

The lower-end “has been the marketplace that’s been more actively selling,” said Ramirez, adding that properties around the $1 million mark are seeing the most activity.

In the co-op market, according to the Elliman report, one-bedrooms and studios saw no decline in median price from the prior quarter, while the prices of larger units continued to fall. And in the condo market, the median price for a studio actually increased 2.8 percent from the prior quarter. The one-bedroom median fell by 4 percent, and the median for the units with two bedrooms or more fell by double-digit percentages.

For more market report coverage, click here.

Related Articles

Democratic State Sen. James Skoufis (Credit: NY Senate)

Real estate agents facing subpoenas after failing to appear at hearing

From left: 1 West End Avenue, 161 West 13th Street and 66 Ninth Avenue (Credit: StreetEasy and Wikipedia)

Porter House penthouse among NYC’s 5 priciest homes to hit the market last week

15 East 90th Street (Credit: Google Maps)

Lonely townhouse finds a match after years on market

From left: renderings of 1 Propect Park West, 85 Jay Street and 98 Front Street in Brooklyn (Credit: StreetEasy)

The priciest Brooklyn condo filings of 2019

60 East 93rd Street and Carlton Hobbs (Credit: Google Maps and Getty Images)

Why a $68M townhouse listing was abruptly pulled off the market

Zillow President Jeremy Wacksman

Zillow launches its high-stakes home-flipping business in LA

From left: the Ritz-Carlton, 32 East 1st Street, 560 West 24th Street, 301 East 80th Street and 32 West 85th Street

Five priciest homes new to market include 1897 townhouse

Ed Gilligan and 3 East 94th Street (Credit: Getty Images, Compass)

Don’t leave home without $21M: Amex exec’s widow sells townhouse