VIDEO: Elliman’s John Gomes says luxury RE may be soft, but sub-$3M market is all the rage

Top agent describes post-Brexit slump on CNBC

TRD New York /
Jul.July 07, 2016 11:46 AM

New York City’s luxury market may be softening, but properties under $3 million are “raging,” according to Douglas Elliman’s John Gomes during an interview on CNBC.

“Anything under $2 million? Forget about it,” Gomes said.

As for the luxury market, he said there’s been too much supply for too long. But much like a swinging pendulum, the market that’s going down now will eventually come back up.

“I think the best time to buy is when the market is going down,” Gomes advised, predicting the second half of 2016 will pick up.

Overall, the number of contracts signed on luxury pads costing $4 million and up dropped 15 percent during the second quarter, according to Olshan Realty.  Meanwhile, the marketing time for luxury properties stretched to 311 days in late June.

But Manhattan’s luxury prices are still rising, thanks to high-end new condominium closings. The median sale price rose 10 percent during the second quarter to $6.6 million, according to real estate appraisal firm Miller Samuel. The median sale price overall jumped 13.1 percent to a record $1.1 million during the same time.

Gomes said post-Brexit, some investors have paused.

“I had a deal brewing on a $20 million apartment,” he said. “The day after Brexit, the buyer said, ‘You know, with the recent news I’m going to reconsider my offer. It’s going to be lower.’”

Although the city’s luxury market is softening, brokers and economists have said Brexit could be a boon for high-end real estate, as investors seek opportunity outside the U.K. and London.

Gomes and partner Fredrik Eklund took No. 5 in The Real Deal‘s latest ranking of the top residential agents, with $437 million in Manhattan listings. [CNBC]E.B. Solomont

Related Articles

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”

Two Elliman agents launch platform to provide renters, buyers and sellers up to $50K in unsecured loans

Jacob Sudhoff and Scott Durkin (Credit: Sudhoff Companies, Emily Assiran, iStock)

Douglas Elliman is coming to Texas

From left: RealPlus' Eric Gordon, Corcoran's Pam Liebman, Halstead's Diane Ramirez, Douglas Elliman's Howard Lorber and Brown Harris Stevens' Bess Freedman (Credit: Eric Gordon by Emily Assiran, Getty Images, Halstead, BHS, iStock)

Terra sells part of RealPlus stake to Corcoran and Elliman

The Real Deal’s E.B. Solomont receives Front Page Award

993 Fifth Avenue and Gilbert Harrison (Credit: Google Maps and GLC)

Retail exec sells Fifth Avenue co-op to Chanel heir for $19M

Rents increased year over year this September in Manhattan and Brooklyn to $4,336 and $3,366

Rents tick up and concessions fall amid broader economic uncertainty

Clockwise from left: 240 Riverside Boulevar with  Charles Zegar, 111 Murray Street, and 220 Central Park South (Credit: Google Maps, Getty Images, and CityRealty)

Here are some of the Big Apple’s recent luxury resi buys