Breakneck market correction is leading to deep home discounts

Brokers say it could be the fastest adjustment ever

TRD NEW YORK /
Nov.November 28, 2016 08:59 AM

One of the fastest-correcting residential markets in memory has led to price chops of up to 50 percent on some high-end luxury homes.

“Historically, we are now in the midst of the fastest market adjustment ever,” Compass president Leonard Steinberg told the New York Post.

There are extreme price cuts at all ends of the spectrum, according to data from StreetEasy.

In the West Village, a penthouse duplex at 165 Perry Street where actor Robert De Niro once lived has seen the biggest drop, with the asking price of $39.8 million more than a year ago plunging 50 percent to the current ask of $19.8 million.

And at the Beekman, the prewar co-op at 575 Park Avenue, a one-bedroom, one-bath unit clocking it at 700 square feet has been on and off the market since 2013. It was listed at $500,000 last year, and this month the price was cut 40 percent to $300,000.

Brokers said that the deep discounts don’t necessarily mean that there are problems with the home, but that many units may have been overpriced to begin with.

“Sometimes, sellers shoot for the highest price points in a market without really knowing what the real transaction value for their property is,” Michael Bolla of Luxury Lofts and Homes International said.

At the Steve Witkoff-developed 150 Charles Street in the Village, a trendy building that Jon Bon Jovi and Ben Stiller call home, an apartment has been on the market for 233 days. Its original asking price of $8.99 million has been trimmed to $7.95 million.

Brown Harris Stevens’ TRData LogoTINY Paula Del Nunzio said that the correcting market is a great time for buyers to scoop up deals.

“Someone’s loss is another’s gain,’’ she said. [NYP]Rich Bockmann

Correction: Due to an error in the source article, a previous version of this story misstated the number of days an apartment at 150 Charles Street was on the market. It was 233, not 1,355.


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