The latest Olshan Luxury Market Report which was released last Monday revealed that 2015 was a year of inconsistencies for the New York City luxury market. Olshan's report is based on contracts signed for at least $4 million. Generally, it showed that New York's high end property market is already cooling off despite closing some major deals in 2015.
It was the year when the average price of a Manhattan apartment valued at $1 million for the first time, while the population of homeless people dramatically increased. It was a year that saw a building boom, while the vacancy dilemma in Manhattan marked its 9th year. Likewise, 2015 was also the year that the Manhattan luxury market broke records with the $100.47 million sale of a duplex penthouse at the reputed One57 skyscraper in midtown, but end the year worrying over high-end property sales flattening out.
In 2015, 1,344 contracts were signed on apartments and homes valued at $4 million and up in Manhattan. In total, the luxury real estate market raked in a total of $10.7 billion in sales. Most high-priced contracts were signed on condos.
The report noted that while the numbers for the last three years are "remarkably similar", the heaviest activityin 2015 took place from January through the summer. It eventually tapered off in September and October.
"In the last four months, there have been only four strong weeks with 30 or more contracts signed -- three weeks in November and one week in December," the analysis stated. "Also the number of contracts signed at $10 million and above dropped 16 percent over 2014."
The report also discovered that luxury properties took longer to be sold in 2015. In 2014, it took an average of 181 days to sell a high-end property but in 2015, it took at least 243.
Some of the contradictions in the luxury market have been highlighted in recent news outlets. The New York Times published a story titled "In 2015, Shattering Records in New York City Real Estate" while Bloomber News ran a story about the failing luxury market in Manhattan.
