wolfstreet.com / by Wolf Richter •
Why a real estate insider thinks era of “aspirational pricing” is over.
Luxury real estate got battered in 2016 in some of the toniest markets – in Manhattan, in the Hamptons, in Aspen, in Miami, etc., but then some sales closed this year, and traffic ticked up in some places, and the meme cropped up that the soaring stock market or whatever was pulling luxury real estate out of its funk.
Last month, Bloomberg explained the phenomenon this way:
Manhattan’s luxury apartment market is seeing sparks of life after sputtering for much of last year as a construction surge created an abundance of choices for the well-heeled. The first two weeks of January marked the strongest start to a year since 2014 for sales at $4 million or higher, with 50 contracts in that range signed, according to a report from Olshan Realty Inc. The increase in deals, coinciding with a stock-market euphoria and developers’ greater price flexibility, follows a year in which luxury contracts fell by 18% from 2015….