Every week we hear of multi-million dollar properties going on the market and sometimes the asking price seems exorbitant, and it really is! With this report we will take a closer look at the numbers of the Manhattan Luxury Real Estate Market, giving you the opportunity to get an idea of what the actual selling price of these luxurious properties is. 

First of all, when we talk about luxury real estate in Manhattan, we refer to properties sold for 4 million dollars and above. In July 2021, there were 151 properties sold, 64 less than the previous month.

However, a decrease that shouldn’t sound alarming, as this sector (and the market in general) has been recovering for several months now. Figure that 38 properties were sold in January, 72 in March, 126 in April. Thus, the number of sales dropped in July is probably the result of seasonality and a market settling down.

Also down slightly from June 2021 was the Average Sale Price, down 2.9% to $7,884,159, and the Median Price, down 4.9% to $5,895,000. 

Demand is present and alive, and the negotiability factor confirms this, i.e., the difference between the last asking price and the actual sale price, which was 4.53%, confirming the declining trend of previous months: 6.73% in June, 11.91% in April, and 14.32% in January. The same applies to Days on Market, or, the number of days a property stays on the market from the moment it is listed for sale, which in July 2021 averaged 179, down from 193 in June, 203 in April, and 267 in January. 

The lower negotiability and the decline in days needed to sell indicate two significant trends: increased demand and a market’s pace that is picking up (although inventory is still plentiful). 

It is a more balanced luxury market, and it follows the trend of the whole Manhattan real estate market, which is experiencing a solid upswing in negotiations, as confirmed by the 109% year-on-year increase in the number of preliminary contracts signed for new construction properties.