- November saw 90 contracts signed for properties priced above $5 million, the strongest luxury sales month in three years.
- Stabilized borrowing costs, stock market gains, and discounted prices have lured buyers back into the market.
- Projects like Sutton Tower, The Surrey Residences, and Naftali Group’s developments are seeing robust demand.
- Wealth creation, optimism from Trump’s election, and falling prices drive high-end market momentum.
New York City’s luxury housing market is roaring back to life, with November delivering its best month in three years for contracts on properties over $5M.
According to Bloomberg, buyers who had been cautious in prior years are finally jumping back into the market.
Discounts Galore
Kelly Mack, president of Corcoran Sunshine Marketing Group, attributed the revival to a convergence of factors: “There was a combination of market forces that woke the market up from its slumber.”
Stock market gains and better borrowing costs, combined with price cuts on some luxury units, are also encouraging activity.
For instance, Naftali Group reported 21 contracts over $4M at 255 East 77th Street and The Henry. Meanwhile, The Surrey Residences sold all but one of its 14 units, with prices reaching $28M.
Discounts Galore
Buyers are benefiting from eased pricing. The penthouse at 432 Park Avenue, initially listed at $169M in 2021, is now priced at $105M, attracting renewed interest. Similarly, a townhouse in Sutton Place sold for $4.73M (4% below asking).
Developers have also lowered prices to stimulate sales. JVP Development adjusted pricing at Sutton Tower earlier this year, enabling it to meet offering plan requirements and become one of the city’s top-selling buildings.
Motivated Buyers
Rajiv Khanna, a recent buyer, highlighted the appeal of this market window. With prices dropping and expectations of rate cuts, he seized the opportunity to secure a property within his budget.
“You finally had people saying, ‘What am I waiting on? Am I going to wait when housing is more expensive? Nope, I’ll just pull the trigger now,’” said luxury broker Ryan Serhant.
A Better Future
Jonathan Miller, president of Miller Samuel Inc., predicts disproportionate growth at the high end of the market, spurred by Donald Trump’s election and its potential economic implications. Wealthy buyers expect favorable policies that could amplify their spending power.
Douglas Elliman agent Noble Black echoed the sentiment, noting doubled traffic at his listings since the election. “A lot of the wealthy are planning on getting wealthier,” Black said, adding that big real estate purchases could become more common as buyers seek status symbols.
Looking Ahead
The recent uptick in luxury home sales may signal more than a temporary bump.
With limited inventory, stabilized borrowing costs, and renewed confidence, New York’s luxury market appears poised for sustained momentum Properties in prime locations, particularly new developments, are expected to lead the charge..
