Price negotiations in Manhattan luxury real estate market drop to zero percent

The NYC real estate market left no opportunity for buyers to lower the asking price. Last week, the negotiability in Manhattan for units sold at $4 million and above fell to 0 percent, the luxury market report from Olshan Realty suggests. This is the biggest decline in negotiability since 2014. 

The report analyzed 41 contracts signed in Manhattan from April 11-17, 2022. According to Olshan Realty, on average, the luxury real estate market offers a 4 percent negotiability from the asking price. Last year, the negotiability reached 9 percent, The Real Deal reports. 

The average asking price for co-ops was about $6.1 million, for condos - $7.7 million, and nearly $8 million for townhouses. The priciest home to go into contract last week was asking $30 million. The unit occupies the 46th floor at 111 West 57th Street, which overlooks Central Park. The condo was originally listed off of floorplans in 2016 for $28.5 million. 

The second-highest asking price for a property that went into contract last week was $27.495 million. The five-bedroom penthouse is located at 301 East 80th Street. In 2019, the unit was listed off of floorplans for $25 million. According to the listing, the penthouse has a private elevator, 12-foot ceilings, and 3 terraces. 

Overall, the report included 7 co-ops, 30 condos, and 4 townhouses with a total asking price of about $308 million. The median asking price for all 41 luxury properties that went under contract last week is $4.998 million. On average, a home spent 541 days on the market. 

Resources:

“Take it or leave it: Negotiations in luxury market fall to 0%,” by Sasha Jones (The Real Deal, 2022)

“Luxury Market Report 2022,” (Olshan Realty Inc., 2022)