Manhattan’s luxury market has seen a recent increase in the percentage of listings with price cuts of up to five or 10 percent. The slowdown is accelerating even faster in the borough’s second highest tier.
BloombergMarkets reports that the decline can be attributed to a boom in supply of luxury condos, which could be cooling down in the coming months.
"It may be that economic and political uncertainty have discouraged domestic luxury buyers, while a strong dollar kept foreign buyers at bay and that they will both return to the market when their concerns are assuaged," StreetEasy economist Krishna Rao said. "But it may also be that prices and amenities in these luxury buildings have reached an unsustainable level and we are going to see some units languishing on the market and others quickly falling in price as they struggle to find buyers. That more than anything will determine which way the market swings."
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