New York

TOP MARKETS

The luxury market in the borough of Brooklyn is heating up. More availability of land—compared with Manhattan—is bringing high-end developers to the outer borough.

The City Is Back

The New York luxury market looks good and is only going to get better, according to Steven James, president and CEO of Berkshire Hathaway HomeServices New York Properties.

Now that more residents and tourists are back, condo sales under $2 million are doing really well. “The upper end of the market—properties over $5 million—is a little softer than the rest of the market,” Mr. James said, “but developers still want to sell condos. And properties in the $2 million to $5 million range, in the right building with good amenities in a good location, are also doing well.”

In the past four months, sellers have been listening more to the brokerage community and have gotten smart about pricing by focusing on comps, meaning comparable homes for sale.

Candace Adams, CEO of Berkshire Hathaway HomeServices New England Properties, said that as a result of the excellent pricing in the city, more properties are receiving multiple offers, especially from those looking to downsize or from younger buyers moving back into the city.

Condos on the Upper East Side have done well before, during and after the pandemic, but now the Brooklyn luxury market is heating up because plots for developers are less pricey.

“Developers are going to Brooklyn and Queens due to lot availability and cost,” Mr. James said.

Ms. Adams said that despite some softening in the past year, the second-home shoreline-property market outside the city is also still very hot, though inventory is a problem.

“We are also seeing that more buyers are receptive to outlier properties that have more land, a pool and a home office, because more people can work from home. These properties were stacking up before the pandemic, but now showings are well-attended, and this is only going to continue,” Ms. Adams said.

“If you are thinking of selling in the next six months [outside the city], now is the time to put your home on the market.”

$2 Million-Plus Sales Inventory in Miami-Dade

Berkshire Hathaway HomeServices EWM Realty surveyed the number of $2 million–plus homes for sale in Miami-Dade from April 2021 through June 2022.

18

16

14

12

10

MONTHS OF INVENTORY 8

6

4

2

0

APR 2021 JAN 2022

Source: Berkshire Hathaway HomeServices EWM Realty

JUN 2022

ties in the wings with a good deal being sold off-plan,” said Michael Vincent, CEO of Berkshire Hathaway HomeServices Portugal Property. “However, it should be noted that the country’s building regulations are extremely strict, which keeps the exclusivity appeal.”

He estimated that it may take two to three years for a building boom to alleviate the property shortage.

Cesar Santos, owner and CEO of Berkshire Hathaway HomeServices Atlantic Portugal, whose office focuses on all of mainland Portugal, Madeira and the Azores, said that new-construction inventory is increasing, “but not enough for market needs. All of the new developments are sold when they are only at the project phase, which shows that there is not enough for the requests.”

Mr. Santos said that “the only way to alleviate inventory needs is by creating new developments at low-populated residential areas near the most trendy places,” and promoting them as investment opportunities.