The strong rebound in house flipping has reached a new extreme: penthouse flipping.
In the latest sign of froth in the high-end home market, Manhattan penthouses are being offered for millions more than they sold for just a year or two ago. While brokers say the rise of penthouse flipping is a sign of strength in the market, with tight supply and strong demand from rich overseas buyers, others say it signals excessive expectations for the luxury home market.
“I don’t see it as a sign of the strength of the market,” said Jonathan Miller of the appraisal firm Miller Samuel. “I think it’s buyers testing the market and seeing if they can get their number. If they can’t, no harm, no foul.”
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