Manhattan Real Estate Returns

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  • Real estate in Manhattan is growing rapidly as the city recovers from the pandemic.
  • The average selling price of condominiums and cooperatives rose to their highest level in eight quarters.
  • The COVID discount has ended and brokers expect the market to be busy in the summer.
  • See more stories on the Insider business page

And they said New York is dead.

Prices rise, cash buyers have returned, and trading has resumed. latest sales report from broker Douglas Elliman and real estate appraiser Miller Samuel.

The average selling price of condominiums and co-ops in Manhattan in the second quarter of 2021 reached its highest level in eight quarters – to $ 1.65 million and $ 820,000, respectively. Another key metric, the average selling price of real estate in Manhattan, jumped 12% from the first quarter to over $ 1.9 million.

It’s not just about prices, more people are buying: In the second quarter, Manhattan recorded more sales in more than six years. Sales – 3,417 – are up 151.8% over the same period last year, the largest increase in sales since Jonathan Miller, the report’s author, began tracking it in 1990. It should be noted that spring 2020 is when the COVID-19 pandemic brought the real estate industry to a standstill and stifled much of the activity. But experts believe the leaps recorded in the spring of 2021 are more than just a recovery.

“The second quarter of 2021 was hot from start to finish,” Pamela Liebman, president and CEO of Corcoran Group, told Insider. “Manhattan had the best spring season for closed sales in six years and the strongest second quarter for contract activity since 2007. A year and a half after the start of the pandemic, it is safe to say that New York has regained its mojo. “

More signs of a real estate rally

The average secondary sales price, which constitutes the vast majority of the Manhattan market and far outstrips new development sales, rose 7.4% year over year to $ 999,000. This is not only a new record, but also the highest price tag in over 18 years of tracking.

The median sale price of all properties in Manhattan, including both new builds and resales, rose 13% year-over-year to $ 1.13 million.

AND bargaining for wars that are commonplace Throughout the country, due to intense competition for a small number of houses for sale, they have now also got into the “Big Apple”. Above-list real estate market share in Manhattan reached 6.8% in the second quarter, the highest level in more than two years. This figure may be far from the record 31% set in 2015, but it has grown from 3% in the first quarter of 2021.

IN COVID-era deals available over the past 16 months seem to be slipping away.

“There are still buyers who think they’ll get a big discount, but those days are over,” he said. Becky Danchik, broker Warburg Realty.

Return to luxury real estate

The luxury goods sector, which includes properties worth more than $ 3.5 million, is booming – in part due to the pandemic-fueled demand for larger homes.

“As many buyers continue to focus on more space, the upper end of the market is also growing rapidly, pushing sales of larger homes to new heights,” said Liebman, adding that the market share of sales of two- and three-bedroom home has jumped to record highs. 34% and 20%, respectively, compared to last year.

upper east side

Park Avenue in Manhattan is lined with expensive apartments in high-rise buildings.

Barry Weinicker / Getty Images


Compared to the first quarter of 2021, the average price of apartments with three or more bedrooms increased by almost 7% to $ 3.1 million, according to a second quarter report by the real estate agency. UrbanDigs

According to Elliman, while sales of $ 5 million or less were up 150.8% year-over-year, sales above $ 5 million were up 168.4%.

“Every week since February, more than 30 contracts worth $ 4 million or more have been signed, the most outstanding performance since 2008.

recession
Warburg Realty CEO Frederic Peter said at his brokerage second quarter report… “It has been one of the hottest springs in history (in every sense) and the real estate community is looking forward to a busy summer.”

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