You know the luxury penthouse might be overpriced in today's market if the developer has to offer a $20m discount to attract buyers.
It also says something about the cash reserves of the developer if he waits around 54 weeks before cutting the price.
And that's just what developer Donald Trump did when he recently cut the asking price of a four-bedroom penthouse at 502 Park Ave. A New York Post article
has the scoop on the luxury apartment, which was slashed to $31m from $51m.
The 35% decline is not too out-of-line with national price declines from regional peaks, although the latter phenomenon occurred gradually over several years as the market adjusted and the former happened virtually overnight.
The cut 54-week hesitation indicates the luxury housing market may not be as insulated from economic downturn as it -- or its developers -- would care to believe.
We were reporting back in August
that the luxury sector was beginning to feel the pangs of buyers cutting back on just how much luxury they can afford. Luxury houses are even hitting the auction block
these days in the midst of low buyer turnout.