A Busy Market

I prepare these updates at the end of each quarter or when there is something noteworthy to share.

The Manhattan residential real estate market just concluded one of its busiest quarters on record. There were nearly 5,000 contracts signed in the second quarter, up almost 60% from activity levels two years ago. Last year’s numbers, of course, were severely affected by the pandemic lockdown, so we need to look back two years to get a useful comparison. This past quarter was the busiest second quarter since 2007. The appeal of lower prices, low interest rates and the reopening of the City have brought buyers out in droves.

Typically, higher levels of activity presage an increase in prices, and we are starting to see that here in Manhattan. What we have not seen - at least not yet - is the kind of explosive growth in prices to all-time highs that are being reported in many suburban areas and smaller cities around the country, particularly in the Sunbelt. Manhattan prices have come off the pandemic lows of a year ago but are still below the pre-pandemic levels of two years ago, which in turn were a little below the all-time highs of 2017 or so.

What has kept the market relatively balanced in the face of strong demand has been high levels of inventory for sale. For example, there were over 6,000 newly listed units last quarter versus a more typical level of 4,500. Total units for sale are slightly below last quarter but remain high by the standards of recent history. Inventory levels usually do grow a little this time of year. This year’s modest decline is probably a positive sign for the market going forward. I continue to believe that prices are likely to go higher from here.

This busy market does appear to offer a little something for both buyers and sellers. Buyers have lots of inventory to consider and are seeing prices that are more reasonable, especially in comparison to suburban alternatives, than in many years. Sellers will find plenty of potential buyers. Appropriately priced properties are often getting multiple offers, something that was much less common several years ago.

If you would like to discuss any of this, or if there is anything I can do for you, please feel free to reach out. You can follow me on Facebook, Instagram and here on LinkedIn for my latest thoughts on developments in the NYC real estate market. Finally, I invite you to search my published LinkedIn articles, for those Fitzig Features addressing a topic that might interest you. These are interviews conducted with notable professionals in complementary fields, such as “Tips on Working Successfully with Architects and Contractors on your NYC Renovation,” “Exploring the World of Fine Art (Building Your Collection) in NYC” and “Dishing the Dirt: A Conversation with Bespoke NYC Dry Cleaner, Jeeves of Belgravia,” all published earlier this year.