The price threshold for Manhattan luxury homes, which constitute the top 20 percent of the market, fell to its lowest level since 2013, according to the fourth quarter 2019 StreetEasy Market Reports. To land in the luxury tier, homes had to be priced at or above $3.82 million — a 6.1 percent drop from the top threshold in the previous year.
This fourth-quarter drop in the luxury threshold shows that many sellers at the top of the market have finally begun to accept lower prices in order to stand out amid the growing surplus of high-end homes. Even as price levels fell in the fourth quarter, luxury inventory expanded 12.2 percent over the previous year, with 4,354 homes for sale above the $3.816 million threshold.
“With so much new construction saturating the Manhattan real estate market, we were bound to see prices start to sink at record paces,” said Nancy Wu, StreetEasy economist. “This is happening across all price points and boroughs, as prospectiv