NYC sales slow in November

Streeteasy Market report is showing that November sales slowed in comparison to the previous month which is not that unusually that given the cyclical nature of the real estate market. However, they are also predicting appreciation in 2015 to be about half of what it was in 2014. In 2014, year over year values are up about 10%. I think that is probably an accurate analysis of the market under $3 mm where inventory continues to remain tight. Prices have risen to a point that it is hard to imagine appreciation continuing at the same pace. 

How do you reconcile the sometimes conflicting reports like the ones provided by real estate firms that show luxury properties sold at record levels in 2014 with these numbers? The Olshan Report  I thnk what most of the reports are missing is a per square foot analysis. A $6 million dollar apartment in Soho or on the Highline is quite a diffferent animal as compared with a $6 million apartment in the celebrated 157 west 57 street. In 157, the least expensive listing is $10mm for about 2000 sqft or $5,000 per square foot. 157 W 57 street LINK 

I think that new development properties that are going to push $5k per sqft plus, will be in for a tough 2015. With the Russian ruble devalued, it remains to be seen if the Russian oligarchs who are were scooping up these apartments will buy more or sit back and wait given that their currency buys less. Certainly, the commercial market will continue to see an influx of foreign money as investors look for a safe haven for their money but will that extend to buy a $25 mm pied-a-tierre? That remains to be seen. …

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