Manhattan Comes Roaring Back
Benjamin Pofcher
Global Real Estate Advisor - Associate Broker 111W57 Sales Team - Field Team at Sotheby's International Realty
MANHATTAN APARTMENT SALES SURGE TO THREE DECADE HIGH
The stunningly quick rebound of the city surpassed every analyst’s prediction. The residential market moved forward with sonic speed as 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 sales 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 trending up while 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 fear of missing out on deals.
Buyers still have both leverage and control as price increases have not been as dramatic as the increases in transaction volume. 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 unbridled optimism in the market. Values have adjusted, the market has reset and prices are adapting to re?ect the new economy, new inventory, and new opportunities, all indicating that we are back on the road to normalization. Manhattan is Rising Again!!
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