New York City luxury real estate is 'undervalued', says Sotheby's International Realty CEO

Summary

Philip White, CEO of Sotheby's International Realty, argues that the luxury real estate market remains robust, fueled by stock market wealth and intergenerational transfers. He calls New York City luxury real estate undervalued, backed by strong all-cash sales and a shift toward co-ops. He also highlights San Antonio as an attractive market due to lifestyle and affordability.

• Luxury real estate outperformed the broader market by 3x last year and remains strong across the U.S. and internationally.
• Wealthy buyers are largely insulated from interest rates, with stock market gains (S&P up 80% 2023-2025) fueling demand.
• New York City luxury real estate is called undervalued, with 22 sales over $4M in a recent week, led by co-ops.
• Most luxury buyers use all-cash, sourced from stocks, other property sales, and tax-free intergenerational wealth transfers.
• San Antonio cited as a great lifestyle market with relatively lower prices compared to Dallas and Houston.
• Co-op sales outpacing condos in NYC signals a potential shift in buyer preference.