As we noted in our prior post, there are a number of factors that will define the 2017 real estate market in New York City. It remains to be seen how the market will play out given the recent interest rate hike, but one thing is certain; the luxury real estate market has slowed down considerably.
According to a recent therealdeal.com article, luxury apartments took on average two more months to sell in 2016 compared to 2015. While it may be a sign of the times from a financial standpoint, it may also be a consequence of all of the competitive building that took place between 2013 and 2015.
Contract signings for luxury apartments and condos fell 18 percent, and signings for luxury co-ops were down 25 percent. Analysts believe that higher qualifications for potential buyers may have played a part in this, but chances are that increased competition between high-end properties and other properties that provide consumer friendly amenities may have led to such a precipitous drop.
The highest apartment contract signing was for a three bedroom apartment in the world's tallest residential building, 423 Park Avenue; which sold for more than $17 million. Nevertheless, prices for luxury apartments and the competing offerings call for the expertise of an experienced real estate attorney. A skilled lawyer can help you understand the market in terms of what your legal rights and options are when it comes to putting together offer sheets and enforcing other related contract provisions.
The preceding is not legal advice.