Manhattan Real Estate - October

November 12th, 2020

October was the best month for Manhattan Real estate market since the COVID outbreak in March. With the lockdown between March - July this year, the market has been dislocated. Typically, March-July is when we see an increase in market activity with more buyers and sellers out there. Due to the backlog, since reopening in July, we saw a massive surge in new supply coming to the market, and demand activity not picking up at the same pace as supply coming to the market. However, the great news now is that we see a decline in new supply coming to the market week on week and an increase in pending sales.

Supply: There are currently approximately 9,300 properties on the market right now, which is about 22% higher than the same time last year. However, in October, only 1,726 new properties were listed, which was about 20% lesser than September. A decrease in new listings coming to the market in October compared to September is a good sign as it is fair to say that we are now seeing a 'flattening of the curve' in terms of new supply coming to the market.

(Picture and all data source used in this report - UrbanDigs)

Contract Signed: In October, 874 contracts were signed, which was 30% higher than September, and about 4% higher compared to October 2019. This increase in the number of contracts signed is excellent for the market; as contract signing activity increases, this shows the confidence buyers have in the NYC real estate market.

For Buyers: There is an excellent opportunity for buyers in the NYC real estate market. With historic low mortgage rates and high supply levels in the market - it is a great time. It is essential for buyers to thoroughly evaluate the marketplace and see their options before making a bid. Only after seeing many properties can a buyer in this market form a perception of the 'right price' and bid accordingly. A smart Real estate agent should help with a comparative market analysis evaluating similar properties and recommending the right price, which will increase the chances for a buyer to get the offer accepted.

For Sellers: Definitely, there are promising signs in the market now that there is a shift taking place towards a more balanced market. However, this is just the first month, and it will take some time before we see a more substantial impact. Smart pricing and innovative marketing will be critical to ensure that your property gets enough exposure and urgency among buyers and agents in this marketplace. The good news is that we do not see anything unusual in terms of average listing discounts, and buyer expectations are also reasonable.

Deal of the month - $25 Million - In Contract - 25 Park Row #PH45A

Penthouse at the new development - 25 Park Row. The topmost duplex penthouse at 25 Park Row, Penthouse 45A spans nearly 6,000 SF and offers prime, protected views over City Hall Park sweeping from river to river.

With five bedrooms and five-and-a-half baths along with over 1,000 SF of outdoor space among living areas and bedrooms, this one-of-a-kind residence is a true architectural showpiece. The stunning double-height living room offers a 23' ceiling and jaw-dropping city and river views at every turn through three uninterrupted walls of windows. An adjacent dining room opens onto an intimate library with a fireplace while the entire residence is anchored by a grand staircase. - Listing Courtesy - Corcoran.

Conclusion:  I am excited about what lies ahead for the NYC real estate market. With higher activity levels, both sellers and buyers are showing confidence in the NYC market's resilience. With positive news coming out that there could be a potential vaccine out soon, I am optimistic that 2021 will be an excellent year for the NYC market.

About Nishant Sondhi: Nishant is a Real Estate salesperson in Manhattan, and specializes in Residential and Commercial Real Estate. He is passionate about helping buyers and sellers navigate the New York market, and save them thousands of dollars, time and make the process enjoyable. His strong analytical, marketing, and negotiation skills developed during his MBA and over 10 years of sales experience give him a unique edge to best serve his clients.