Luxury real estate broker Olshan Realty, Inc. has some bad news for New York’s hedge fund managers looking to dump their luxury $5 million, 1,500 square foot palaces as the market for luxury New York City real estate just might be on the verge of collapse. Accroding to a year end report published by Olshan, contracts for luxury co-ops (defined as those with an asking price above $4mm) collapsed 25% in 2016 while the average number of days that apartments sat on the market surged 31% and discounts to original listing price also jumped a point to 6%.
The decline reflects classic price resistance. There was a 2% increase in the average asking price, but a 30% increase in the average days on the market – 318 days. You read that right – it took more than two months longer to sell a luxury property in 2016 than in 2015. The average price drop from listing to contract signing was 6%, an increase from 5% in 2015. There was also a 5% decline in contracts signed at $10 million and above.
This post was published at Zero Hedge on Dec 28, 2016.
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