New York's luxury real estate market is in flux, but showbiz insiders are still snapping up prime properties

New York's luxury residential real estate market has it all: the most expensive listing in the country, from stunning penthouses, amenity-rich condos, vintage brownstones, contemporary townhouses and chic, updated pied-à-terre. What he doesn't have now is certainty. Sales have cooled in the summer (as they always do seasonally) and real estate professionals are anticipating an uncertain decline due to rising interest rates and inflation, coupled with fears of recession.

Despite the current macro-economic conditions, prime real estate in Manhattan and Brooklyn remains a portfolio industry staple for talented and powerful players, while up-and-coming, below-the-line buyers venture further afield to hot Brooklyn neighborhoods like Bushwick and Bay Ridge, and outer Queens (not yet Staten Island).

Predicting where the market will go next is difficult. Caution abounds. "It's safe to say that whichever direction the market takes, it won't be as dramatic as it has been or as dramatic as other markets," says Sotheby's International Realty's Jeremy Stein of the group. Stein. He sees the market as being in neutral territory, and unlike 2021 and early 2022, neither buyers nor sellers are favored. This comes after a 16-month run that ended in May, where "the sales volume was historic and epic," Stein says. Prime, high-end properties always attract interest: his business is a 5,919-square-foot penthouse in SoHo's iconic Romanesque Revival Puck Building; the five-bedroom, five-and-a-half-bathroom penthouse with over 2,000 square feet of outdoor terraces is listed at $35 million.

"2021 was the best year in New York real estate history," says Pamela Liebman, president and CEO of Corcoran, and not a benchmark year for comparison, she argues (Liebman is a featured realtor in Netflix's reality skein "Buy My House"). She points out that the city is still above 2019 sales numbers, even though rising mortgage rates are already impacting sales. Liebman has seen an increase in interest-only loans as the luxury segment historically favors cash purchases. “There are still bidding wars where there is a shortage of this type of property,” she notes, and no bargain when it comes to finding the dream apartment in New York. However, bidding wars are not the norm in all areas: only 15% of deals in August were closed above the list price, says Liebman.

"I think people search - if they find what they really want, they find it ' are buying. If there's a lot of inventory in a certain price range, they'll want a deal," Liebman adds.

Buyers, she argues, can be bold; savvy buyers will use their power now.

She finds that talent is still considering buying in midtown Manhattan, preferably in "a sexy new development". Penthouses continue to appeal to Los Angeles buyers looking for panoramic views and space to entertain.

"Entertainment executives are drawn to upscale downtown condos," a- she declared. said. Corcoran is a three-story triplex penthouse overlooking Central Park at 111 W. 57th. The 7,130-square-foot residence is listed at $66 million in a 60-unit boutique-sized building that ticks all the boxes: full service, plenty of amenities, privacy, views, and security. Condos are also more attractive to celebrities and other wealthy individuals than co-op buildings because financial statements aren't required and there are fewer rules about renting, Liebman says.

"I think it would be an understatement to say that New York is back: tenants and luxury buyers go home,” says Carl Gambino of Compass. 841 homes priced over $5 million were sold in Manhattan through August, according to Compass statistics.These exchanges of luxury and ultra-luxury homes priced over $5 million more than $10 million rose 35.6% in the first eight months of the year, compared to the same period last year and the first eight months of 2019 before the pandemic, notes Gambino.