Luxury Manhattan sales market set to slip following Wall Street’s compensation declines

New York /
Mar.March 13, 2012 09:00 AM

The high-end Manhattan real estate that has propped up an otherwise stagnant sales market, is likely to begin a decline of its own in 2013 and 2014. According to data from the New York State Comptroller’s office and Miller Samuel CEO Jonathan Miller cited by Bloomberg News, the top 10 percent of the Manhattan condominium and co-op market tends to follow the pattern set by Wall Street bonuses two years earlier (see chart above).

Considering that the average bonus fell 13 percent last year to $121,150, nearly 40 percent below the 2006 peak of $191,360, luxury home prices are probably on their way down.

The peak of Manhattan’s high-end market occurred in 20008 — exactly two years after the height of Wall Street compensation — when the average price of a transaction in the top 10 percent was $6.33 million. Last year the average price was $5.49 million, according to Miller.

“People are making decisions a year or more down the road because they’re getting their deferred cash,” he said. “We may see a little weakness in 2012,” and “next year could be weaker based on this trend of lower compensation.” [Bloomberg]


Related Articles

arrow_forward_ios
Here are the week’s top luxury sales
Here are the week’s top luxury sales
Here are the week’s top luxury sales
Clockwise from left: John D. Rockefeller, Izzy Englander, Steven Mnuchin, David Koch, Jacqueline Bouvier, and William Zeckendorf (Credit: Getty Images and StreetEasy)
For 15 years, David Koch lived at the world’s “richest building”
For 15 years, David Koch lived at the world’s “richest building”
Here are the week’s top luxury sales
Here are the week’s top luxury sales
Here are the week’s top luxury sales
48 East 81st Street
5 enviable abodes on the Upper East Side
5 enviable abodes on the Upper East Side
Sterling Equities Chairman Fred Wilpon and 334 West 20th Street (Getty, Compass)
Sterling Equities’ $22M Chelsea townhouse sale claims neighborhood record
Sterling Equities’ $22M Chelsea townhouse sale claims neighborhood record
85 Jay Street (Williams New York)
Condos at 85 Jay Street claimed last week’s 3 priciest Brooklyn contracts
Condos at 85 Jay Street claimed last week’s 3 priciest Brooklyn contracts
Manhattan rents recover to pre-pandemic levels as new leases slow
Manhattan rents recover to pre-pandemic levels as new leases slow
Manhattan rents recover to pre-pandemic levels as new leases slow
Mystery buyer closes on “Jenga Tower” penthouse for $45M
Mystery buyer closes on “Jenga Tower” penthouse for $45M
Mystery buyer closes on “Jenga Tower” penthouse for $45M
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...