This year’s housing market has been dominated by sky-rocketing prices and record-breaking shifts among the luxury market, according to TRD Editorial Director Hiten Samtani.
In an appearance on “The Watch List,” a program on the TD Ameritrade Network, Samtani noted the luxury market in Manhattan — defined as sales of $4 million and greater — has already seen a record year. The market hit $11.4 billion last week after 27 contracts were signed, breaking an annual record of $11.3 billion, which was set in 2014.
“The luxury markets have been on fire,” Samtani said.
The housing market isn’t only booming for the ultra-rich buyers of New York City, Samtani noted. Miami has surpassed Los Angeles as the second most expensive housing market in the United States, according to the latest report from RealtyHop.
#TheWatchList with @NPetallides ➡️ @SykesStyle and @hitsamty evaluate the health of the U.S. consumer, focusing on consumer confidence data and the housing landscape moving forward: 🎥 https://t.co/dIwu5O0ZSz
— TD Ameritrade Network (@TDANetwork) September 28, 2021
“These enclaves seem to have become magnets for the super-rich, they’ve obviously been untethered from location when it work, so it’s all about play, all about lifestyle,” Samtani said.
Prices have been surging in Magic City as demand for condos and single-family homes rose and supply declined. A household in Miami should expect to pay 81.6 percent of median income towards homeownership costs, right above 81.2 percent in Los Angeles.
While the housing market surges, concerns persist for the commercial real estate sector, which took a hit during the pandemic as more companies shifted to work-from-home models. Tech firms taking advantage of low prices and interest rates have emerged as the biggest customers of office properties, but the markets in major cities are still uncertain.
Samtani said interest rates likely won’t affect ultra-luxury homebuyers, but would affect the central business districts in cities like Los Angeles and New York.
“That’s where I feel like there’s going to be the biggest question marks,” Samtani said. “There’s no reason for someone to come in five days a week, over and over — despite what the big landlords say — there’s been a dramatic unbundling of work from location.”
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