Celebrity Real Estate Buys Pull Up New York City Market

The stock market is not the only financial indicator which has gone up since President Trump was elected over a year ago. The luxury real market around the United States is booming. Celebrities, including Madonna, Jennifer Lopez and Beyonce and Jay Z, are spending tens of millions of dollars. That drives up the value of all other real estate in the area, benefiting everybody. New York City in particular is red hot, a prime area for wealthy celebrities to live in because it’s still the nation’s business and media center.

In this article on Fox News, two New York City real estates explain that affect. By buying a townhouse in New York for $32 million, Madonna totally transformed the neighborhood. Such sales have what one agent calls a “halo effect,” whether it’s just because people want to live in the same neighborhood as celebrities such as Madonna or because prices go up and only wealthy, responsible people can afford to move into the area.

In the second quarter of 2017, the price of luxury homes increased by 7.5 percent, to $1.79 million. According to Redfin, the number of sales of properties priced at $1 million or over was up 22.6 percent. The number of transactions for homes priced at $5 million or above was up 19.6 percent. The inventory of luxury properties keeps going down, but the demand keeps going up. That obviously drives prices higher as the wealthy bid against each other for the best available properties.

As long as the overall economy keeps thriving, this trend will probably not change. Successful celebrities have the desire for prime luxury homes, and the wealth to pay for them. And when they need or want to change, they will sell. Recently Tom Cruise sold an estate for $40 million and LeBron James sold his Miami home for $13.4 million. But Adele bought a mansion in Beverly Hills for $10.75 million.

Tom Postilio, one of the New York City real estate agents Fox News interviewed said that having a house valued at $1-2 million is a very good price point. Sales of homes worth $50 million did slow down quite a bit a few years ago, but are now going up again.

According to Town and Country, Matthew Broderick and Sarah Jessica Parker are transforming Manhattan’s West Village. Last year, the two star actors bought two adjacent townhouses, at 273 and 275 West 11th Street, for $35 million from the nonprofit organization United Methodist Women, which had owned them both since 1920, using them for housing and to hold conferences. However, according to building permits they have filed with the city, they are seeking permission to demolish interior partitions.

So, they are planning to combine the two separate units into one megatownhouse. According to the New York Post, the Morris Adjmi Architects firm is handling the renovations. When the work is complete, the new backyard will be 2,100-square-feet. So there should be plenty of room for Broderick and Parker’s three children to play.

However, one luxury real estate building in midtown Manhattan is not doing so well is Trump Towers. Also according to Town and Country, only five condos there have sold since Donald Trump took office as president. And they were sold for an average price of $2,100 per square foot. That’s down 13 percent from 2016. The median sales price was $2.2 million, the lowest since 2007. There are now 21 units available for sale or for rent in the building.

It could be that having the President of the United States in your building is not having halo effect on the other units because the Secret Service subjects everybody going into the building to submit to airport-level security.

 

 

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