As we reported last month, the Manhattan real estate market has been red hot in the 3rd quarter of 2021. Now, we are seeing September’s final sales data coming in, and the numbers are quite incredible. This is especially true in the condo and co-op markets. More apartments were sold in Manhattan this past quarter than any other quarter in the past 32 years.
Signs of Market Recovery
New York City is recovering faster than anyone could have imagined. We already had a down real estate market prior to the pandemic, and then the coronavirus had its impact on our local economy. Many people moved out of the city in 2020 and it was essentially a fire sale. However, they are all coming back in droves in 2021. Sales have risen dramatically and home prices are starting to return to pre-pandemic levels.
“What we’re seeing right now is a catch-up,” says Jonathan J. Miller, author of the Manhattan Elliman Report, in a recent New York Times article. “All the suburbs were booming while Manhattan was seeing sales at half the normal rate last year. Now we’re seeing this massive surge.”
Manhattan Real Estate Sales
Let’s take a look at some of the Manhattan real estate sales data from the September 2021 Elliman Report for New Signed Contracts:
Manhattan Co-ops:
• New Signed Contracts – 362 (up 2.5% from Sept. 2020)
• New Listings – 1,077 (up 4.6% from Sept. 2020)
Manhattan Condos:
• New Signed Contracts – 410 (up 76% from Sept. 2020)
• New Listings – 813 (up 13.5% from Sept. 2020)
Manhattan Single & Multi-Family Homes:
• New Signed Contracts – 32 (up 357.1% from Sept. 2020)
• New Listings – 51 (up 15.9% from Sept. 2020)
Download the full report here:
Rising Home Prices
Overall, the median sales price in Manhattan over the past three months was $1,115,000, which is 1.4% higher than Q3 2020 and 8.8% higher than it was in Q3 2019. One bedroom co-ops and condos make up the largest share of sales. Their median price was up to $800,000 this past quarter (up 3.6% from Q3 2020). More activity has been happening with higher-priced condos and co-ops in the multi-million dollar ranges. This is a great sign for the market’s recovery as prices continue to return to where they were a few years ago.
The reasons for prices coming back up are that there is more buyer competition in the market. There are more buyers (including more cash buyers), more bidding wars and fewer price discounts from sellers. All signs are pointing in the right direction for a full Manhattan real estate market recovery. We’re not just returning to pre-pandemic numbers, but we are getting back to pre-2019 numbers (before the Mansion Tax was implemented).
We’re excited to see where the New York market is headed for the final quarter of 2021 and into 2022. If you have questions about Manhattan real estate or you are ready to buy or sell a home in the city, contact us today to schedule a private consultation.