Property values go in cycles. That is just a natural part of buying and selling real estate. Building up until the housing market collapse in 2008, properties were heavily inflated in value due to banks being mandated by the federal government to grant mortgages to individuals who should not have qualified, either based on financial reasonings or credit reasoning. Ultimately, this led to the bubble bursting the prices dropping drastically down. Often times, when a market starts to level out and people begin moving back into the market place (luxury condos in New York City) the prices begin to over correct for the issue. As Town Residential points out, this is currently the case with luxury condos within the city. Due to this, properties are selling for higher than what each property is worth. That likely will start to cool off significantly throughout the course of the year.
Town Residential is a New York City real estate agent that specializes in luxury property listings. The company wants to make sure both buyers and sellers are aware of what is going on in the market. This way, buyers know if they should hold off or of sellers should list their property now. In the case of individuals looking for luxury condos, it currently looks as if it is going to be better to wait. Now, it is possible for the interest rates to increase slightly over the next several months, but values will begin to decline as it comes more in line with what the actual value of luxury real estate is.
Town Residential also wants to make sure both buyers and sellers realize more and more properties are being released every single month. With more properties, it is more likely that it will reduce possible costs as buyers have more available options at their disposal. All of this makes it easier to understand that luxury condos are starting to cool, so buyers should wait a bit before pulling the trigger on a new property.