To say 2020 was a strange year would be quite an understatement. We are still far from out of the woods with COVID-19, but from a real estate perspective—especially here in New York City—there were many encouraging signs. We are choosing to “Embrace the Optimism” and looking forward to an exciting 2021 New York real estate market!
Q4 2020 Elliman Report
In order to understand where we’re headed, it’s important to review the market data from the 4th Quarter of last year. A closer look at the numbers reveals many encouraging signs. Douglas Elliman recently released their Manhattan Sales Report for Q4 2020.
Q3 saw the highest inventory total in Manhattan since 2009. Though inventory was up along with home prices, sales were still fairly slow. In Q4, we saw Manhattan real estate sales surge by over 38% this past quarter. They fell short of the sales numbers from Q4 2019, but it’s clear that the market is definitely moving in the right direction again. Mortgage rates remained at historic lows, which led to fewer cash buyers because home loans are so affordable right now. Condo and co-op sales rose significantly, with new development sales exceeding the quarterly average for the decade. Luxury sales prices also continued to rise while other markets saw value drops that brought the overall average sales price down.
New York Real Estate Sales Figures
What’s clear is that people are returning to the city and there is renewed confidence in the Manhattan luxury market. Here are some sales numbers from the Q4 2020 Manhattan Elliman Report:
- Average Sales Price ($1,868,994) was down 14.3% in Q4 compared to Q3 2020 (up 2.9% from Q4 2019).
- Total Number of Sales Closed (1,909) was up 38.8% in Q4 compared to Q3 2020 (down 20.6% from Q4 2019).
- Average Number of Days on Market (122) was down 11.2% in Q4 compared to Q3 2020 (up 6.8% from Q4 2019).
- Listing Inventory (8,277) was down 11.2% in Q4 compared to Q3 2020 (up 24.6% from Q4 2019).
What to Expect in 2021
Based on what we see happening in our market, we feel that the property values in Manhattan bottomed out in 2020 and will only continue to rise as we head into 2021. If you are looking to buy in the city, we recommend taking advantage of the favorable market conditions while you can with low mortgage rates and good prices. We think there will be many buyers who decide to wait until later this year and will ultimately regret that decision. Now is the the ideal time to buy in Manhattan!
As we get into the spring and summer markets (with the vaccines hopefully more widely distributed by then and all the election turmoil behind us), we expect a strong rebound and further upward trends for Manhattan real estate prices, inventory and completed sales. Mortgage rates could also go up. Eventually, they will have to as the economy recovers and the market self-corrects. This makes the winter months a great time for sellers to start getting their property ready to list for a hot spring market.
We’re excited to see what the 2021 New York real estate market brings. If you have questions about buying, selling or renting a home, condo or co-op in Manhattan, contact us today and let us help you make sound real estate decisions.