To some, it would appear that the luxury Manhattan market is in crisis mode. OMG, Blavatnik pulled out of his $150 million deal at The Mark and flippers at The Plaza recently cut prices! Total. Chaos. Luckily, at the very same moment we're left questioning the luxury market's ability to wow us in 2008, along comes the Luxury Loft team and their February Luxury Letter to provide some analysis. In his introductory comments, team co-leader Leonard Steinberg paints a sort of mixed bag:
The most significant indicator, the number of buyers, is very strong. On some premium, highly desirable properties there were multiple bids....but only if they were priced exactly where the market is, or below market. A few areas appear to have an over-supply of inventory, but the super-luxury market is balanced, and there are shortages of certain classifications in certain areas. Open houses are very well attended, and familiar faces of those buyers that have been on the fence keep mounting.Wait, since when do these buyers care about market value? We're talkin' trophies here! But as Edgar Bronfman Jr. tries to sell his Fifth Avenue co-op for $4.5 million more than he paid for it two weeks ago, we're left to wonder: Is this the year when luxury buyers take a deep breath and stop the madness?
· Luxury Letter [Luxury Loft]