NYC Luxury Real Estate Market Drops in 2016: Report

The numbers are down sharply from 2013-2015 but still much higher than they were in 2012

New York City's luxury real estate market cooled considerably this year, with the number of high-end sales down 18 percent, realtors Olshan Realty Inc said Tuesday.

Olshan blamed co-ops for the decline, as demand has shifted to condos instead. But even still, the "golden years" of new condo construction have passed, the firm added.

A total of 1,102 properties had contracts signed for $4 million or more this year, down sharply from 2013-2015 but still higher than 2012, before the condo boom started. 

New York City's luxury real estate market, defined as housing with prices of more than $4 million, saw an 18 percent decline in contracts signed in 2016, as the condo market cooled.

Average days on the market rose 30 percent, meaning it took an extra two months to sell a luxury apartment this year versus 2015. The average asking price also rose, but the average decline from asking to contract actually increased a bit. 

Still, though, there's enough demand to sell apartment sight unseen. Olshan said 58 percent of all condo sales were new construction sold off just a floorplan. 

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