Happy New Year from the entire Tom and Mickey Team! We hope you all had a wonderful holiday season and are ready for 2022.
Trending in the Right Direction
The New York City real estate market had one of its best fourth quarters ever in Q4 of 2021. Despite omicron concerns and changing mask/vaccine regulations, the real estate market was extremely strong through the end of the year. 2021 was a banner year in New York overall with home prices rising significantly and steady market activity in all boroughs and Long Island, as well. Buyers have returned to the city in droves and have sparked a much-needed resurgence in the local housing economy.
A Closer Look at the Manhattan Sales Data
Manhattan saw increases in property sales across all property types, including luxury homes, single-family residences, condos and coops. Newly signed contracts saw a rise year-over-year compared to Q4 2020. New contracts in December 2021 were much higher than the same period two years ago, which represents the seventh time in the last eight months this trend has occurred. New contracts at or above the $4 million threshold were more than double in December than they were in 2020.
Here are some of the key year-over-year Manhattan real estate sales stats from the 2021 4th Quarter Elliman Report:
• Average Sales Price – $1,948,603 (up 4.3% from Q4 2020)
• Number of Sales Closed – 3,559 (up 86.4% from Q4 2020)
• Days on Market – 159 (up 30.3% from Q4 2020)
• Listing inventory – 6,207 (down 25.0% from Q4 2020)
Let’s also take a look specifically at the Manhattan luxury real estate market data:
• Average Sales Price – $7,777,332 (up 1.7% from Q4 2020)
• Number of Sales Closed – 358 (up 87.4% from Q4 2020)
• Days on Market – 198 (up 16.5% from Q4 2020)
• Listing inventory – 1,352 (down 7.8% from Q4 2020)
Manhattan Q4 Real Estate Analysis
As you can see, home prices and the number of closed transactions have been up. Listing inventory continues to be a problem, with buyer demand far outweighing the supply. This is good for sellers and will keep home values rising heading into 2022. One really interesting piece of data is the listing inventory in the luxury home market. It is down from Q4 2020, but trending in the right direction compared to the overall Manhattan market that includes condos, coops and houses priced under the $4 million “luxury” threshold.
New developments are also on the rise with strong selling and a major increase in the number of sales closed. There were 103.4% more new development units sold in Q4 2021 compared to Q4 2020, though that number is down slightly (9.2%) compared to Q3 2021. This is expected as the market always slows down in the winter and holiday months. Too see as much activity as we saw in the 4th quarter is a great sign of things to come as we prepare for a very hot spring market push.
If you are planning to buy or sell real estate in Manhattan in 2022, it helps to understand the market and start preparing as soon as possible. Contact us today to schedule a no-obligation real estate consultation.