Good news for luxury home lovers: Fortune is reporting that prices are falling on the most expensive houses in New York City, specifically in Manhattan. While the rest of the market is continuing to go up, the cost of luxury homes is dropping, and this is due to a number of factors. More luxury homes have hit the market than regular homes and the top buyers' demands have been fully met. A weak Euro, bad year for hedge funds, and the Chinese stock market’s instability have also contributed to the drop in rates. “You take all of those factors and you sprinkle them onto a real estate market that was overpriced to begin with, and you’re going to feel it,” Donna Olshan, president of Olshan Realty, explains.
While the article doesn’t mention how this affects the rest of the real estate market, there’s hope that the bubble will burst and prices on everything, from luxury apartments to regular-sized studios, will decrease in the coming year.
Other real estate news from Fortune? There may be more single women buying homes in 2016. In large cities like Boston, Seattle, and San Francisco, more women are earning more than six figures, which allows them to enter the housing market on their own terms. Cool, right?
To check out what it takes to create a luxury high-rise in New York City, browse the pages of 400 Fifth Avenue ($67).
Are you considering buying a home in the new year?