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Posts Tagged ‘Bloomberg Radio’

Manhattan Luxury Housing Buyers: ‘Eager but not Desperate’

February 15, 2014 | 7:37 pm | bloomberg_news_logo | Public |

There was a terrific Bloomberg News story by Oshrat Carmiel: Manhattan Trophy Home Sellers Test Buyer Limits on Price that delved into the disconnect between reality and perception of the luxury housing market in Manhattan. I talk about this phenomenon on Bloomberg Radio’s ‘Taking Stock’ with Pimm Fox and Carol Masser.

It all began with Sandy Weill’s $88M sale of 15 Central Park West PH20 to a Russian Oligarch back in late 2011 that closed in early 2012. He was reportedly purchasing the unit for his 20-something daughter to crash when she wasn’t at her home in Monaco but it was more likely a divorce strategy. The home sold for $13k per square foot, 30% more than the recent $10k ppsf record previously set within the building (ie definition of an outlier).

Combine this outlier with the dearth of high end new development until recently and this 13k ppsf threshold became a new pricing tool for hopeful sellers and real estate brokers of large properties. The $100M resale penthouse listing at CitySpire was the new symbol of “outlier pricing” phenomenon. Other examples of aggressive pricing are cited in the Bloomberg story.

Despite the fact that this nearly $100M subset represents a tiny sliver - a handful of listings and sales – in the overall Manhattan market, consumer (buyers and sellers) have been subjected to a buzz saw of news reports about trophy properties giving the impression that properties like this comprise most of the housing market.

In reality there have only been a handful of contracts signed near the $100M threshold at buildings like One57 and 432 Park Avenue (the near $100M townhouse contract doesn’t count because it’s roughly 1/2 the ppsf of those apt sales)..and otherwise the overall Manhattan market seeing very modest price growth.

Yet none of the trophy apartment resales are selling at this new price point. Sellers have been testing the waters to see if someone across the globe will be willing to pay for something here, that in relative dollars to their home market is a good deal or they hope they will get lucky and these buyers will over pay.

Apparently these trophy sellers haven’t used the Internet.

UPDATE
Just got this feedback emailed from a real estate agent: In every neighborhood and property class “testing the waters” is an age-old technique that has enough utility to go on forever. As an agent, I prefer the price that results in a quick sell but I never turned down a client who insists on an absurd Ask. In most such cases, I have picked up a few customers and sold them something else they could afford before the “outlier” ran out of inquiries and the seller dropped its price or took it off the market. I like it when journalists report activity at the extremes of price and value because it helps me to identify the evolving dimensions of the market.

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Bloomberg Radio’s ‘Taking Stock’ with Pimm Fox and Carol Masser
Bloomberg News: Manhattan Trophy Home Sellers Test Buyer Limits on Price

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[Video] Manhattan’s tight non-luxury housing market on Bloomberg TV’s Market Makers 8-7-13

August 8, 2013 | 2:02 pm | curbed | Columns |

Yesterday, Oshrat Carmiel’s real estate piece: Manhattan Homes Under $3 Million Never Harder to Buy hit the terminals and web site rising almost immediately to the most emailed and most read article of the day. The starting point for her article was based on my firm’s data – extracting the luxury market data from the overall market – to observe what’s happening to “non-luxury” real estate. I define luxury real estate as the top 10% of all sales prices in a period. This analysis looked at the remaining 90% and as it turns out – the Manhattan market is a lot tighter there.

I had a fun discussion with Erik Schatzker and Alix Steel about the “non-luxury” Manhattan market on their Bloomberg TV show “Market Makers.”

I also did an interview with Kathleen Hays and Vonnie Quinn on Bloomberg Radio’s “The Hays Advantage” and also used the data I compiled in my weekly column on Curbed covering the same topic.

As of today, the Bloomberg article is still the most read on Bloomberg worldwide. Apparently there is interest in the housing market beyond the super wealthy’s real estate exploits.

It was a busy day.

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