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Photo: Bernardo Benzecry/Flickr

As 2016 came to a close, looking back, it was not a good year for Manhattan’s luxury home market. According to a new year-end report by New York brokerage Olshan Realty, this year Manhattan’s luxury home market recorded its worst year for sales in the last three years.

From January 1 through December 15 of this year, just over 1,100 luxury properties — properties selling for $4 million and up — were sold. This represents a nearly 20 percent decline from 2015. Seventy-six percent of all contracts were condos, with 58 percent of condo sales being in new construction developments.

Meanwhile, co-op sales declined 25 percent year-over-year. This was indicative of a market shift in the luxury market to new condos that offer robust amenities, “hip architecture,” and freedom of ownership, says Olshan in a release.

Nearly half of all luxury sales in 2016 were located in Downtown, where new condo development has been thriving.

This year’s luxury sales volume was $8.9 billion, down nearly $2 billion in volume from last year. Prices increased 2 percent year-over-year, although there was a 6 percent decrease in price from asking to contract. This was higher than the 5 percent decline recorded in 2015.

In addition to lagging sales, properties spent more time on the market this year, with 318 days this year compared to 243 days in 2015.

The decline in luxury home sales “reflects classic price resistance,” says the report. It went on to reiterate that as prices increased, the number of days on the market rose dramatically from the previous year.

Click here to read the entire report.

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