NYC Real Estate - October 2021
Nishant Sondhi
Real Estate Investment Fund Manager | Specialized in Passive Investing for Multifamily & New Developments | Data-Savvy, Transparent, Committed
October was a fairly busy month for the Manhattan Real Estate market! With September being an active listing month, October also saw many new properties coming to the market and going under contract.?
There is still positive momentum in the market about NYC Real Estate.?Example: In October, Microsoft leased over 150,000 sqft of office space in Flatiron, Manhattan.
?How were Inventory levels in October?
A total of 1,935 new properties hit the market in October, which was almost 15% lesser than September. September is an active listing month; we did see nearly 2,500 new properties hit the market.??However, moving close to the end of October, we saw a decrease in the number of new listings coming to the market as we headed towards the holiday season.
Contract Activity in October
?A total of 1,274 properties went under contract in October, which was almost 30% higher than September. A big reason for this is that once an offer is accepted, it can take up to 2 weeks for a contract to be signed due to due diligence activities and contract negotiations conducted by Attorneys.?
Listing Discounts?
As per the latest reports, we can see that in September the average listing discount, from Orginal ask, was at?5.6%, and for properties that had price cuts, the average listing discount was at 4%. Therefore, we can infer from this that properties that have been well priced and marketed are not giving more than a 5-6% listing discount. This number has gone up in September, as compared to the lows in May, June, and July.?
Listing Discounts by Price Points
?It is interesting to note that average listing discounts in price points below $2 Million saw average listing discounts closer to 5%, price points between $2-$4 MIllion closer to 7.5%, and price points above $4 Million closer to 10%. So, as we are going higher in price points, the leverage that buyers have is more.
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Conclusion:?
With an increase in Inventory levels in September and October, there is now a small window of opportunity for Buyers. I still feel that it is a?'healthy' market'. If there is a property that has been priced right and marketed aggressively, there will be buyers interested. For a Buyer, there are enough options in the market to choose from and make an intelligent decision.?
Note: Data and Charts used in this report - UrbanDigs.
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.
?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.