New York...Beyond Back
Manhattan Apartment Sales Surge to Three-Decade High.
The stunningly quick rebound of our beloved city is joyously welcomed. Quite surprisingly, and beyond every analyst’s prediction, the residential market moved forward with sonic speed. Manhattan delivered a record-breaking Third Quarter and set a 32-year sales record.
Thanks to the uptick in sales, spurred by rising vaccinations and still-low mortgage rates, sale prices have already exceeded prepandemic levels in many segments of the market. Manhattan is now solidly beyond the covid-discount period, back to 2019 prices and sales velocity is off the charts. The deal surge helped devour Manhattan’s massive pile of listings from earlier in the pandemic. As of mid-September, there were 28% fewer than a year ago indicating a tightening of inventory. Still, inventory remained historically high -- at 17% more than the decade average for a third quarter.
The luxury market continues to rebound at a faster pace than initially forecasted. All segments; Coops, Condos and Townhouses saw an increased volume of transactions at the over $10m level. In particular, the number of luxury townhouse contracts signed so far this year is 173, already shattering the previous record of 153 contracts set in 2014. This robust activity has been driven primarily by domestic buyers, however Foreign buyers are re-entering, feeling emboldened by the city’s resurgence and FOMO (fear of missing out).
Buyers still have both leverage and control as price increases have not been as dramatic as the increase in transactions. In Manhattan’s overall market, the median sales price increased by a modest 5.3%.
As foreign buyers return to the city and many workers return to the office, there is… dare we say; optimism in the market. Values have adjusted, the market has reset and prices are adapting to reflect the new economy, new inventory, and new opportunities, all indicating that we are back on the road to normalization. Manhattan is indeed Rising Again.