Manhattan luxury market takes hit with 19% decline in contracts in Q1: Olshan

This is the 3rd consecutive year-over-year fall

1107 Fifth Avenue and unit 14S (left) and 111 Murray Street and unit 59West (right)
1107 Fifth Avenue and unit 14S (left) and 111 Murray Street and unit 59West (right)

The forecast for Manhattan’s luxury residential market continues to be bleak, as year-to-date sales declined for the third consecutive first quarter.

There were 27 contracts above $4 million signed last week – valued at $199.5 million – according to the latest luxury market report from Olshan Realty.

The new deals brought the total luxury sales for 2019 to 229. This figure is a 19 percent decline in comparison to the same period in 2018, when 282 properties went into contract, which was 15 percent lower than 2017 sales. The number of first quarter days on the market has also spiked to 516, up from 469 in 2018 and 390 in 2017.

“In my opinion, the luxury market continued to scream: OVER PRICED!!!!!” wrote Donna Olshan, the realty firm’s president. She added that a recent drop in interest rates might generate some sales in the luxury market.

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It was the fourth time in five weeks that total sales exceeded 20 deals. Last week’s sales included 15 condos, 10 co-ops and two townhouses. During the first week of February, just 15 deals were done.

The most valuable sale last week was apartment 14S at 1107 Fifth Avenue, which sold soon after it was listed, with an asking price of $21 million. The three-bedroom co-op features a library, two fireplaces and two terraces with a view over Central Park. It was sold by Howard Stringer, the former CEO and chairman of Sony, who paid $16 million in 2005.

At second place was apartment 59West at Steve Witkoff’s 111 Murray Street, which had an asking price of $16.9 million. The 3,892-square-foot condo has five bedrooms.  [Olshan] – David Jeans