The Douglas Elliman Reports are in for the second quarter of 2021. As always, we want to take a closer look at some of the data in our primary market of Manhattan and other interesting real estate trends happening in the New York City area.
The Shift Back to Urban Living
Throughout the pandemic, we saw a massive increase in suburban buyers—especially in Long Island. Many people were getting away from the busy city, but it was only a matter of time before the buyers started coming back. In the first quarter of 2021, we already started seeing a noticeable shift in this trend. In the second quarter, there’s no doubt home buyers are returning to the city’s urban lifestyle.
The median sales price for Manhattan co-ops and condos reached its highest level in two years ($1.1 million) during Q2. Home prices continued to soar as buyer demand spiked and mortgage rates remained relatively low by historic standards. There were more than 3,400 sales closed between April and June, which represents a spike of almost 40% over the first quarter.
Inventory vs. Demand
Meanwhile, housing inventory couldn’t quite keep up with the buyer demand. In fact, listings increased by only 9%. This is great news for Manhattan sellers who have put their properties on the market. Homes are selling relatively quickly and for higher prices than they have in years. Still, there is a long way to go before the New York real estate market returns to pre-pandemic levels. It may be even longer until we can get back to where the market was in 2019 prior to the Mansion Tax. The good news is we definitely seem to be heading in the right direction.
Manhattan Real Estate Sales
Let’s take a look at some of the key Manhattan real estate sales data from Q1 2021:
Manhattan Condos & Co-ops:
- Average Sales Price ($1,921,204) was up 12.3% in Q1 compared to Q2 2021 (up 2.1% from Q2 2020).
- Total Number of Sales Closed (3,417) was up 39.7% in Q1 compared to Q2 2021 (up 151.8% from Q2 2020).
- Average Number of Days on Market (169) was up 22.5% in Q2 compared to Q1 2021 (up 36.3% from Q2 2020).
- Listing Inventory (7,880) was down 21.6% in Q2 compared to Q1 2021 (down 50.0% from Q2 2020).
Manhattan Luxury Homes:
- Average Sales Price ($7,753,276) was up 19.4% in Q1 compared to Q2 2021 (down 2.0% from Q2 2020).
- Total Number of Sales Closed (342) was up 37.3% in Q1 compared to Q2 2021 (up 151.5% from Q2 2020).
- Average Number of Days on Market (256) was up 17.4% in Q2 compared to Q1 2021 (up 65.2% from Q2 2020).
- Listing Inventory (1,522) was down 3.1% in Q2 compared to Q1 2021 (up 9% from Q2 2020).
To download the complete Manhattan Q2 2021 Elliman Report, click here.
New York Suburban Market Trends
On the other side of the coin, there has definitely been a significant slowdown in the New York City suburbs. The real estate markets are still strong with year-over-year growth, but the rate of growth is slowing in markets like Greenwich, Westchester and Long Island. To put it into perspective, the annual increase in Long Island was 162% in May 2021. In June, it was only 14%. Inventory is also tight in these markets, but buyer demand is decreasing. Some would-be buyers are growing too frustrated with the competition for fewer properties. At the same time, buyer demand has been shifting back to the city as the year progresses. It will be interesting to see how these trends continue in New York’s suburban markets.
Our real estate market is likely going to be a bit of a roller coaster throughout 2021 and likely into 2022. All signs are pointing to a more “normal” long-term balance between urban and suburban demand and housing values. It will just take time after a couple of crazy economic years and a pandemic that had such an impact on our beloved city.
If you are thinking about buying or selling a home in Manhattan this year, it pays to start planning your move as soon as possible. Contact Tom & Mickey today to schedule a New York real estate consultation.