Sorry, Manhattan real estate owners, but your luxury home might not be worth as much as you think it is.
A new Olshan Realty report found that homes with prices of $4 million or more that went into contract during the year’s first 12 weeks took an average price cut of 10 percent, the highest going back to at least 2012, according to Bloomberg. And the price cut will probably be even steeper once the sides reach a final deal.
A seven-bedroom, 10,253-square-foot townhouse on East 65th Street, for instance, was put on the market in October for $18 million, but the seller later lowered the price two times, eventually getting it under contract for $14 million.
Overall, 230 luxury units have gone into contract this year through March 18, down 17 percent from the same time period a year ago. They spent an average of 466 days on the market, which was the longest amount of time for the beginning of a year dating back to 2012.
“The biggest problem right now is just straight-up overpricing,” Olshan president Donna Olshan told Bloomberg. “People are still being delusional about their real estate.” [Bloomberg] – Eddie Small