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Any Offer Will Be Responded To

A report from The Real Deal on New York. “Penthouse listings — despite their catchet — aren’t immune to the new development glut. The new batch is adding to those that have been lingering — and are now asking lower prices. At 56 Leonard Street, for example, one property is listed for $49.5 million, down from $61 million at the end of last year and $53.3 million in March. Another started at $35 million last year and is now asking $26 million.”

“In the third quarter, the number of closed luxury sales — the top 10 percent of the market — dipped 11 percent from a year earlier, according to Douglas Elliman. At the same time, active listing inventory rose 27 percent.”

“‘We’ve seen a surge in new inventory on the market at all price points, but on the ultra-luxury end, this latest wave of homes is compounding a surplus that’s been growing since 2015,’ said Nancy Wu, an economic data analyst at StreetEasy.”

“Jason Haber, a broker at Warburg Realty, said that, with one of his buyers, ‘every apartment we go see seems to be a penthouse’ — because there are so many currently available. And even with properties listed near $20 million, he said, listing agents are aggressively soliciting offers, willing to hear out buyers who come in below the asking price.”

“‘Any offer will be responded to,’ he said. ‘You didn’t get that a year and a half ago.'”

“Compass’ Leonard Steinberg said penthouse buyers move more slowly in any market — much less one that’s in the midst of a slowdown. ‘When you have more opportunity, there’s less urgency,’ he said. ‘A penthouse buyer is usually not a desperate buyer for a home.'”

From Real Estate Weekly. “Citi Habitats agent John Farrell helped an international client buy Penthouse A at The Twenty 1 condominium at 117 West 21st Street for $8.4 million. ‘As an investor, my client was in search of a Manhattan property that offered tremendous upside,’ Farrell said. ‘After showing him several different options, it became clear that nothing was going to match the price-per-square-foot value provided by Penthouse A.'”

“‘Best of all, through negotiation and strategic patience, we were able to secure the property for a substantial $1.1 million discount,’ Farrell said. ‘It’s potentially one of the best deals you’ll see all year.'”

From Mansion Global. “An Amagansett, New York, home that has been on the market for more than a year is taking another price cut, nearly halving its original ask price.”

“The approximately 6,500-square-foot house was first listed in 2016 for $11.5 million by Brown Harris Stevens, the listing agent confirmed. It has changed brokerages over the course of two years. On Oct. 5, Douglas Elliman got the listing and reduced the house’s asking price to $5.995 million from its most recent ask of $7.995 million.”

“The current owners ‘probably spent what we’re asking for the house,’ but ‘if you want to sell it, you have to price to the market,’ and its new price now matches that, said Enzo Morabito, the listing agent.”

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This Post Has 11 Comments

  1. ‘An Amagansett, New York, home that has been on the market for more than a year is taking another price cut, nearly halving its original ask price’

    I love the sound of sawin’ and a slashin’ in the mornin’!

    ‘As an investor, my client was in search of a Manhattan property that offered tremendous upside’

    The market needs knife catchers John. Kinda spreads the burn around.

  2. ‘‘We’ve seen a surge in new inventory on the market at all price points, but on the ultra-luxury end, this latest wave of homes is compounding a surplus that’s been growing since 2015’

    Yep, the bubble burst years ago.

    ‘listing agents are aggressively soliciting offers, willing to hear out buyers who come in below the asking price…‘Any offer will be responded to…You didn’t get that a year and a half ago’

    That because they spent the last couple of years chasing the market down. That’s expensive behavior! What happened to the inventory loans? Remember, borrowing so they could warehouse these airboxes until the market came back. Boy that didn’t last long.

  3. “Compass’ Leonard Steinberg said penthouse buyers move more slowly in any market — much less one that’s in the midst of a slowdown. ‘When you have more opportunity, there’s less urgency,’ he said. ‘A penthouse buyer is usually not a desperate buyer for a home.’”

    You mean these are just trophy houses not intended to live in?

  5. Here’s a listing to review in Solana Beach – San Diego. 740 S Nardo Ave, Solana Beach CA 92075

    Another 20% drop on what appears to be a flip. Bought for 1.13 last year then 10mo remodel. Started at $1.9 in August. Zestimate is still 30% above new asking price.

    1. It’s a great looking house until you find out the garage was annexed for additional interior space. Still, I’d pay $500k for it.

    2. Wow that flip didn’t work out to well. Looks like about 90% of the homes surrounding it are all price reduced. The great California RE rollercoaster 🎢 buy now or be priced out forever —Realtor

  9. ‘As an investor, my client was in search of a Manhattan property that offered tremendous upside,’ Farrell said. ‘After showing him several different options, it became clear that nothing was going to match the price-per-square-foot value provided by Penthouse A.’”

    A Manhattan property “offering a tremendous upside” doesn’t exist in the current market and inventory. Another RE “client” just got bamboozled.

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