Manhattan Luxury Home Market gears up for summer downturn

21 East 61st Street and 200 Amsterdam Avenue (Photos via Extell, 200 Amsterdam)

Summer is officially here and with it a likely downturn in the Manhattan luxury home market.

Although the number of such contracts signed last week remained high at 33, the dollar volume fell to the lowest total since the last week of January, according to the Olshan report, which tracks contracts for homes in the borough. asking for $ 4 million or more.

Asking prices for these homes totaled just over $ 237 million, just above $ 235 million for 27 properties during the last week of January.

Of the 33 deals last week, 19 were condos, but only six of the sellers were developers, a change from the past few weeks when developers were responsible for the majority of condo sales.

Donna Olshan, author of the report, called it a “telltale sign of summer.” While the number of contracts has maintained its “remarkable and astonishing” run, she said, Olshan expects contract prices to drop, as many of the year’s most sought-after properties have already been announced.

Sales have increased in recent months compared to a year ago when pandemic restrictions crushed the city. Sales of closed condos and co-ops in Manhattan in the past three months are up 40% year-on-year, according to Douglas Elliman’s second quarter report.

“As we go through the inventory the numbers will slide,” she predicted.

The most expensive home to contract last week was a 3,582 square foot co-op located at 21 East 61st Street. The three-bedroom pad features a library, Central Park views, and 1,100 square feet of outdoor space. It was last asking for $ 15.5 million, although the owner paid $ 21.6 million in 2015.

The second most expensive was a condo at 200 Amsterdam Avenue, asking for $ 14 million. The four-bedroom apartment spans 3,188 square feet and features a 326-square-foot terrace.

The average discount between the initial price and the final asking price was 5%, down from 8% the week before.