Manhattan luxury real estate sales remain strong, even a month after the introduction of a tax on second homes in New York City. In June, 126 contracts were signed for apartments priced at $4 million or more, up 2 contracts from the same four-week period last year, according to Olshan Realty.
Low inventory in the luxury market is also adding pressure to buyers. The average price of a Manhattan apartment reached its second-highest level ever during the second quarter, up 5% over the past year to roughly $2.2 million, according to Brown Harris Stevens.
While some buyers were initially spooked by the tax, the influx of liquidity from recent IPOs and rising asset prices has outweighed their fears.
“The amount of money out there is insane,” said Lauren Muss of Douglas Elliman.
However, it is still too early to judge the long-term impacts of the tax, as real estate lawyers note that there will be years of litigation related to the tax.
