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Brexit is even hitting NYC luxury real estate, broker says

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Foreign buyers & luxury real estate

The effects of Brexit have rippled into New York City, and buyer anticipation of lower prices has pushed interest away from high-end luxury apartments, according to one real estate broker.

The market had "an immediate response" to Great Britain's vote to leave the European Union, said John Gomes, a Douglas Elliman broker.

On CNBC's "Power Lunch" on Wednesday, he recalled working on a $20 million apartment deal that went awry "the day after Brexit happened. " The buyer wanted to reconsider in hopes of hitting a lower purchase price.

"People are taking advantage of Brexit and the uncertainty that it causes ... to negotiate lower pricing in what is already a softer market," Gomes said.

The market shift has increased demand in a limited supply real estate environment.

"Anything below $3 million right now is raging. If it's below $2 million forget about it," Gomes said.

Looking forward to September, Gomes expects "the second half of the year [to] bring opportunity … as more inventory gets released."