New York’S Luxury Real Estate Market Defies Expectations In 2024
(MENAFN- The Rio Times) New York's luxury Real estate market bucked broader trends in 2024, achieving its second-best year on record. While the general residential market struggled, properties priced at $10 million or above saw 278 contracts signed.
This stark contrast highlights the resilience of the ultra-luxury segment. The total value of contracts for properties priced at $4 million or more surpassed $11 billion, an 8.5% increase from 2023.
Median asking prices for luxury apartments hit a record $3,000 per square foot. These figures underscore the strength of the high-end market despite economic uncertainties.
New developments drove this growth, with buyers strongly preferring condominiums over cooperatives. This shift reflects a desire for modern amenities and new construction.
The top sale of the year was a $135 million apartment at 730 Fifth Avenue, showcasing the continued appeal of prime Manhattan real estate. The luxury market's strength correlates with significant gains in the stock market.
The S&P 500's 27.3% year-to-date increase as of December 26, 2024, boosted the wealth of potential buyers. Federal Reserve data shows the total net worth of the top 1% in the US grew to $46.7 trillion.
However, challenges persist in the broader Manhattan market. The median home price dropped slightly to $1,359,749, a 0.4% year-over-year decline.
Different neighborhoods experienced varying trends, with Harlem seeing an 18.6% price increase while SoHo faced an 11.4% decline. Looking ahead, limited inventory and robust demand are expected to sustain high prices in the luxury sector.
However, external factors such as interest rates and economic trends will continue to influence the market. This resilience demonstrates the enduring appeal of New York City's prime real estate, even in the face of broader market challenges.
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