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Market Update: Fantasy, Reality in Nasty Divorce Tiff

Above, penthouse apartment porn to celebrate the waning warm weather of November. That's 44 East 12th Street, kids, just below Union Square. Asking price for the 1,294sqft duplex is an even $2mil.

Oh, and it's also a property repped by Elliman brokers Leonard Steinberg and Hervé Senriqueier, whose monthly paean to the luxury real estate market landed in our inbox yesterday. This is the duo who punctured the bubble, then labored mightily to blow it back up. Where do they see the luxury market in Manhattan settling this month? Let's see...

The initial spurt of new properties that were launched at the beginning of the Fall has eased, and while many asking prices were definitely adjusted to more realistic levels, most selling prices have not dipped as significantly as what was reported earlier in the month, especially on prime apartments. Yes, this is an opportunity for buyers to negotiate a little, and actually get what they like without a bidding war... A list exists of properties that have been on the market for months and even YEARS with fantasy asking prices. Fantasy and reality are now officially separated, the first indicators of a NORMAL MARKET.Fantasy and reality are now separated? Hello, guys? This is New York Freaking City. If we don't have our fantasies, my God, we've got nothing. Here's praying for a rapprochement. Bonus! After the jump, a bullet-point list from Leonard and Hervé of market factors to keep an eye on. Go ahead, add your own.

From the Luxury Letter:

P.S: In the past, when this kind of market has emerged, it has been followed by an active market??a great deal is dependent on whether the interest rates stay below 8%?. Other Important factoids to consider: · Building costs keep rising sharply (they hardly go down)
· Land costs keep rising and land remains scarce in NYC
· Bonus-time is around the corner?..and the banks have been doing rather well?..
· Nobody knows for sure what the future holds: past predictions have been proven wrong repeatedly.
· Jobs, income, growth + new households are STRONG?

· November 2005 Luxury Letter []
· Listing: 44 East 12th Street [Douglas Elliman]