Manhattan Real Estate - Q1 2021
Nishant Sondhi
Real Estate Investment Fund Manager | Specialized in Passive Investing for Multifamily & New Developments | Data-Savvy, Transparent, Committed
The resilience of the Manhattan residential real estate market was on full display in Q1 -2021. Inventory levels which had climbed up to almost 10,000 units, in late October 2020, subsided to just about 7,000 by the end of March 2021. Low prices, at levels similar to 2010, and record low mortgage rates, have drawn attention from many motivated buyers who want to make sure they get a piece of NYC real estate before it is too late. The low prices and low interest rates - make it a fantastic opportunity for buyers, and they did not miss out.
Where is the market right now?
As we can see with the above graph, the gap, which was very wide between supply and demand, has narrowed down in a big way. Overall, apartment sales increased 4.8 percent compared to last year's same time and soared 37 percent quarter over quarter. Most notably, units priced in the lower half of the market, between $1 million and $3 million, captured 40 percent of the market - an all-time high.
What were the big takeaways in Q1?
- The average sales price and price per square foot dropped 7% and 5% year-over-year, respectively, while the median price climbed by 2%.
- Nearly 35% of Co-ops sold at or above their asking price
- Downtown saw the most sales, with just under 29% market share, and had the highest average price of any submarket.
- Downtown and Upper East Side saw the most Co-op sales with 26% and 25% respectively.
My Views:
While prices have not risen significantly through this quarter, they are likely to begin an ascent during the spring season. Those buyers who awaited 'the bottom of the market'' now feel fearful that they might be missing out. We can expect more inventory to come in the Spring/Summer market - and for those buyers who are still looking to get a good deal, that is low prices, and low-interest rates - there is still an opportunity before the market becomes more competitive. It is exciting to see the resilience of New York City and it coming back to life.
Note Data and Charts used in this report - UrbanDigs and Compass.
Have questions about NYC market forecasts and trends, or anything else real estate-related? I'd love to connect! Don't hesitate to reach out.
Detailed Interview with CEO of UrbanDigs - Future of Manhattan Real Estate
About Nishant Sondhi: Nishant is a Real Estate salesperson in Manhattan and Brooklyn, and specializes in Residential 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.