Manhattan's luxury real estate market experienced a significant slowdown last week, with only one home asking more than $10 million entering into contract. This marks the weakest performance for the city's trophy-home market since late December, according to Olshan Realty's weekly luxury market report.

Between July 6 and July 12, just one property priced above $10 million was sold. In contrast, 29 Manhattan homes valued at $4 million or more went into contract during the same period, with most of these deals involving properties priced below $6 million.

Brokers have suggested that affluent buyers are reconsidering New York as a place to own property due to what they perceive as anti-wealth rhetoric from Mayor Zohran Mamdani and uncertainty surrounding the newly implemented pied-à-terre tax. Victoria Shtainer, a Compass broker who works with international buyers, stated that luxury buyers are carefully evaluating the political climate and tax burden in New York, with advisers scrutinizing whether the city remains a welcoming environment for wealthy individuals.

While summer typically sees a seasonal dip in real estate activity, Shtainer noted that the recent figures were notably lower than usual. She described the situation as "shocking in a really bad way."

However, Jonathan Miller, founder of appraisal firm Miller Samuel, indicated that the weakness at the highest end of the market is consistent with trends observed in the second quarter, where sales above $10 million declined while the market just below that threshold saw an increase. Miller cautioned against drawing firm conclusions from a single week's data, citing the influence of seasonal factors and the ongoing strength of wealth generated in sectors like Wall Street and technology.

Miller also stated there is no definitive evidence that wealthy buyers are leaving New York at a faster rate due to the current administration. He suggested that the uncertainty surrounding the implementation of the pied-à-terre tax may be a contributing factor to the pause observed among buyers. He also noted similar behavior in the Hamptons market, which shares close ties with Manhattan.

The single eight-figure deal recorded last week was for a condominium at 1122 Madison Avenue, listed at $21.8 million. The next most expensive transaction involved a Chelsea condominium asking just under $10 million.

The New York Post has sought comment from Mayor Mamdani regarding these developments.