Posted by Jonathan J. Miller -Thursday, January 5, 2012, 8:47 AM
The $88M sale of a Manhattan condo a few weeks ago brought the finishing touches to a year long adventure with records broken and people wondering how on earth some individuals have so much money to spend on housing.
Well there are and yes they do.
And we are not talking about:
-The luxury market (Manhattan starts at around $3M)
-or even the top 1% (Manhattan starts at about $10M)
Throw in a couple of $48M sales and we are really talking about the top .025%.
The numbers are surreal to most and it may cause some to start talking to themselves or wondering if they chose the right career path or rationalizing why these people must be miserable.
Here are the questions that I get asked (not about the career path part but about the trophy property sale part):
Q: Is this a market trend?
A: No, its a market phenomenon. A handful of “one-off” sales that happen in clusters.
Q: How long will this last?
A: Who knows. I wouldn’t be surprised of more of the same in 2012.
Q: Is this a sign that the housing market is back and we are out of the woods?
A: No. It’s a sign that people will spend more than $10k per square foot on housing (and they must be miserable and unhappy.)