Dear Friends,
Summer of 2016 is off to a steamy start; The Brexit (Britain Exit Euro) is a big ticket nowadays and is the most exciting global event that could impact New York’s real estate.
According to a new report by the brokerage firm Knight Frank, fears of an EU exit are putting a damper on London’s luxury real estate market.
Paired with a recently increased UK stamp tax on the purchase of secondary homes, London could lose its prime place as THE international investment destination to its longtime rival – The Big Apple (the new stamp tax on a purchase of a second home of $2,900,000 will reach an aggressive sum of $290,000!).
International buyers seeking political stability and a strong economic environment may be further drawn to purchase properties in New York City and other parts of the country. On the other hand, this could be a double-edged sword.
If Britain does leave the UE, financial markets around the world, including the US, may not be immune to the ripple effects. In any case, we’ll find out soon enough on June 23rd.
Meanwhile in NYC, it seems like the market is moving sideways: great activity in some areas, very quiet on others. If the attitude of buyers toward overpriced property over the last couple of years was of curiosity and possible engagement, today they will not engage in such properties, and often, will not see them.
The environment that allowed average properties to be priced as premium is no longer prevalent in this market.
With that, one of the indicators of the current state of the market is traffic of contracts signed over $4M, which has been quite strong: Over the past 30 days, 122 contracts were signed, with 35 over the past week alone.
“One reason for the one-week surge is this: The average property was on the market for a lengthy 311 days, which finally prompted exasperated sellers to face reality and drop their prices an average of 11% from the original asking price. The luxury market is bloated and choking with a lot of overpriced inventory, but once sellers capitulate and adjust to realistic price levels, the market moves,” writes Donna Olshan of the Olshan Report.
With an election year never seen before, London being anxious, and the streets of Paris mobbed by Russian and British “soccer tourists,” it promises to be an interesting summer.
Lastly, in this edition we are featuring an outrageously beautiful and equally unique Park Avenue apartment with fantastic Central Park and city views.
Thanks for reading. Have a great summer.
Ariel
Highlights
Long Beach NY, one of the best of beaches
Oldie but goodie. Billy Crystal in a short clip about beautiful Long Beach, New York…
Thousands flock to Christo's "The Floating Piers"
Italian architect's new project, "The Floating Piers”. The illusion of “walking on water”…
Future Co-Living is planned for Jersey City
WeWork's third project of its kind is looking to shape the future of Urban Habitat…
Ariel Tirosh & Team
Licensed Associate Real Estate Broker at Douglas Elliman
917.750.5654 | atirosh@elliman.com