Are you looking for luxury real estate in New York City’s Upper West Side? If you want to break into NYC’s luxury real estate market, it is important to be aware of luxury real estate trends for 2022. As a niche sector of the market, luxury real estate attracts an exclusive but highly active buyer population and exhibits its own unique set of movements. In this article, we will discuss the top trends influencing NYC’s luxury Upper West Side real estate market today. Let’s take a look!
A bit about NYC’s Upper West Side
The Upper West Side of Manhattan is one of the most desirable locations in New York City, boasting some of the city's best schools, restaurants, and cultural attractions. It also possesses a rich history and is known for its beautiful architecture. Because the Upper West Side is one of the most expensive places to live in New York City, this neighborhood attracts buyers from all over the world who are willing to pay top dollar for property in this prime location.
A bit about luxury real estate
The luxury real estate market, in general, consists of the top five to ten percent of listings in a given area. In large metropolitan areas, it is typical for luxury properties to be listed for $1 million or more. In major metropolitan areas such as New York, the minimum price for a luxury listing is approximately $4 million.
For a property to qualify as “luxury,” it must meet a number of factors. As previously stated, it must fall within the top five to ten percent of listings in its area. Furthermore, luxury real estate typically boasts a premium location, expert design, high-end finishes, top-tier amenities, and desirable style.
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Trends for luxury Upper West Side real estate
The luxury real estate market on the Upper West Side has been booming in recent years. Prices have soared, and there is high demand for properties in this coveted neighborhood. If you are thinking about buying or selling luxury property on the Upper West Side, now is a great time to do so. Here are some trends you should be aware of before you do:
1. Prices are rising
The sky is the limit when it comes to luxury real estate in Manhattan. Luxury properties on Manhattan’s Upper West Side are experiencing price increases as well. As of October 2022
, the median price of Manhattan homes was $1.15 million, with median prices up 4.5% compared to the third quarter of 2021. While price increases have slowed compared to the growth in 2020 and 2021, thanks to recently increasing mortgage rates and general concerns about the economic state of the country, the continued increase signifies that luxury real estate continues to be a hot market.
2. Luxury real estate is selling fast
Overall, home sales have increased dramatically over the past few years. Although sales are down overall compared to 2021, sales have increased by 11.8%
compared to the second quarter of 2022. Even in the midst of economic uncertainty, many luxury homebuyers will continue to search for investment properties. This is because real estate can serve as a hedge against the fluctuations and uncertainty of the stock market.
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3. Increased demand for second homes
People used to be wary of purchasing a second home for fear of never using it. Due to a lack of vacation time, the secondary residence would sit empty for most of the year, resulting in wasted funds. Because remote work is on the rise, people who are no longer tied to one specific workplace believe they can now get the most out of their money when purchasing a second home. This has led to an increase in affluent buyers making a home away from home for themselves in Manhattan's Upper West Side neighborhood.
4. Luxury listings are less affected by the housing shortage
In the general housing market, a severe shortage of available homes has contributed to an exponential rise in prices. Unfortunately, there aren't enough vendors to match the needs of the buyers, leaving a severe shortage of properties available in the market. The lower end of the housing market has been hit hard by this, but the luxury real estate market has remained relatively strong.
Due to the limited pool of potential buyers for luxury real estate, waiting times for a sale can be rather lengthy. Sellers are eager to take advantage of the competitive environment created by the surprise bull market and the swarms of buyers who have descended upon it.
As a result of increased competition from potential buyers, the supply of homes dropped in 2021. However, luxury real estate fared the best. New York City properties within the range of $5 to $10 million made up more than 25% of the housing inventory during 2022
Are you considering buying or selling luxury property on Manhattan’s Upper West Side?
Are you thinking of buying or selling a luxury property on the Upper West Side of Manhattan? From the array of entertainment spots, exceptional shopping and dining, the stunning New York City skyline, and the slew of events in the area, you will be well on your way to a life of excitement. If this sounds like a dream come true, you want to make sure you work with only the very best when searching for properties in the area.
The Living New York
is well-known in the Upper West Side real estate sector for their cutting-edge marketing strategy that raises the profile of their sellers' properties as well as for their immense proficiency in locating and obtaining exceptional offers for their clients. The team of experienced agents has a deep understanding of the Upper West Side luxury real estate market and can provide you with the knowledge and resources you need to make informed decisions you feel confident in. Contact the expert team
today to get started.*Header photo courtesy of Shutterstock