According to an Apartment List survey, 53% of those surveyed say that the new tax law will have no impact on their home ownership plans and 17% said it will impact them positively. Along party lines more Democrats feel that they are negatively impacted by the tax reform than Republicans. Also, 31% of Democrats surveyed in impacted counties said they will wait longer before purchasing.
Basially, in Manhattan’s real estate market, there are two markets- the world’s elite led by high net worth individuals both domestic and abroad and the affordable luxury purchasers. New construction is really only being built with the former market in mind. Many of the shiny midtown towers inlcuding 432 and 520 Park avenue, 157 W 57 street, 220 CPS as well as their downtown counterparts are focusing still on the large luxury apartments with scant offerings under even 2000 sqft.
According to Streeteasy.com apartments priced at $10mm and more spent an average of 147 days on the market as compared with about half as many days a year earlier. This is no surprise for several factors. Here are a couple:
1- More inventory- Inventory has increased nearly 100% in the luxury market in the last year. On Billionaire’s Row aka 57 street, there are 4 projects coming to the market or already in the market that will compete with One57. There are 6500 units total coming to the market in 2015 with roughly 1/3 asking $2300 per sqft or higher.
2- Strengthening dollar- Foreign buyers are seeing their money is not going as far.