Luxury Real Estate Sales in Manhattan Down in 2016: Report

NEW YORK, NY — The luxury real estate market in Manhattan reached its lowest point since 2013 this year, according to a year-end report conducted by brokerage firm Olshan Realty.

From Jan. 1-Dec. 15 only 1102 properties exceeding $4 million were sold in Manhattan, representing an 18 percent decrease from 2015, according to the report. And the low number of sales wasn't the worst sign for the luxury market. According to the report a luxury property in 2016 was, on average, listed for 318 days before a sale, up two months from 243 days in 2015.

The report attributed declining luxury sales numbers to "classic price resistance." The average asking price for Manhattan real estate increased 2 percent in 2016, but as the report showed, demand did not increase at the same rate.

Another factor that contributed to the decline of luxury sales was the emerging popularity of Downtown condominiums over stuffy Uptown co-ops and townhouses. The report showed a 25 percent decrease in co-op contracts worth more than $4 million, "signaling a continuing market shift in the luxury market to new condos that offer freedom of ownership, new infrastructure, robust amenities, and some hip architecture."

Here's some numbers that explain this year's market for luxury listings in Manhattan:

• Total contracts signed with value exceeding $4 million: 1102
• Type of listing:
• Apartments: 990
• Townhouses: 112
• Location of listing:
  • Upper East Side: 227
  • Upper West Side: 193
  • Midtown: 143
  • Downtown: 539
• Total Contract Sales Volume: $8,937,866,862
• Average Asking Price on Apartments + Houses: $8,090,435
• Median Asking Price Apartments + Houses: $6,367,820
• Average Discount from Original Ask to Last Asking Price: 6%
• Average Days on Market: 318

Read the full Olshan Realty Inc. report here

Photo by Pete Toscano via Flickr/Creative Commons