We have just released the May Core Realtime Report reflecting the numbers for May and here are our findings.
The Manhattan market was one of the last to feel the effects of the global financial crisis, but we can clearly see that we have not been immune.
Nine months after the collapse of Lehman Brothers there seem to be some signs of life creeping back into the entry level part of the market. Prices are down more than 30%, mortgage rates are at historic lows, you can have your pick of the littler, and when you find what you’re looking for, you can negotiate from a position of strength.
The ultra high end seems to be another story completely. There were only 15 sales above $5 Million (out of more than 500). How was the pre Lehman collapse market quantifying $5000 PSF? What was the rationale behind these $30 Million sales? Irrational exuberance, perhaps? Clearly, even the rich are not buying it any longer, and it seems significantly more difficult to find equilibrium on this end.
The high end market will return, as it always does. The question is, just where will we land….and when?