Sellers of Manhattan luxury homes just won’t face reality on pricing

Houses for $4M+ took average price cut of 10% since 2018 began

TRD New York /
Mar.March 23, 2018 02:15 PM

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

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”

Brokerage firms are strategizing ways to make up losses after the cost of application fees was capped at $20. (Credit: iStock)

Brokerages on rental application fee cap: “It hurts”

Alex Rodriguez (Photos by Guerin Blask)

A-Rod is coming for NYC and SoFla real estate

There will be 70 agents based at the new office (Credit: iStock)

Compass opens Long Island City office as new-development sales surge

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

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

The Daily Digest - Tuesday

New life for Toys “R” Us, Masa Son is “embarrassed” with the Vision Fund: Daily digest

Nooklyn CEO Harley Courts (Credit: iStock)

Brokerage slashes agent commissions, delays payments after rent law change

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