The median sale price for new luxury homes in Manhattan jumped 72 percent — to $7.85 million — in the last year, up from a mere $4.564 million in the last quarter of 2012.
Real estate experts say the trend will continue because the economy has rebounded, people are more willing to take the plunge now and luxury buyers are bidding up the market.
“Even though the prices have risen, they expect them to rise even more. They are very confident,” said Dottie Herman, president and CEO of Douglas Elliman. “The high-end buyers are the ones who really follow the market. They are real-estate junkies.”
And the high-end niche is not just rich foreigners.
“Now a lot of New Yorkers who live and grew up in co-ops are looking at new luxury condos,” said Diane Ramirez, CEO of Halstead Property.
“In the 1980s, the luxury market was about studios, and one- and two-bedrooms,” she said. “Today the new developments going up have two to five bedrooms and more.”
Corcoran says Manhattan homes listed for $100 million are now a “new market reality.” But the other boroughs also are seeing price booms.
Warburg Realty said prices jumped 20 percent in parts of Brooklyn in 2013 — and a couple of town houses in Long Island City, Queens sold for more than $2 million.
“That high-end buyer is still buying and the numbers will only get higher. Everyone is hot on housing,” said Elliman’s Herman.
The majority of these “real-estate junkies” just voted into office a communist who vows to bring class warfare back to the city. Do these buyers really approve of that and now offer their wealth as a sacrifice or do they, like so many deluded liberals in other failed countries, assume that their foes don’t mean to hurt them? It will be fun to see how this plays out.