The Manhattan apartment real estate market is recovering a year after thousands of New Yorkers fled the city during the COVID-19 pandemic.
According to real estate market research firm UrbanDigs, nearly 1,500 apartments and cooperatives were for sale under contract in March.
That figure is an increase of 36.5 percent from February and an increase of 137.2 percent from the year before.
What’s more, UrbanDigs co-founder Noah Rosenblatt told me The Wall Street Journal it is the largest number of one-month deals in Manhattan in the past 14 years.
It comes as another report from real estate company Douglas Elliman reported a 690 percent increase in new co-op and condo contracts signed in March 2021 compared to March 2020.
The increase is due to growing confidence that the city is safe and that buyers are benefiting from low mortgage rates and general prices.
Nearly 1,500 apartments and cooperatives were for sale under contract in March, an increase of 137.2% from the previous year and the highest level in 14 years
Realtor Douglas Elliman reported 788 new cooperative contracts signed with the company in March 2021, an increase of 696% from the 99 signed in March 2020.
In addition, 553 new condo contracts were signed last month, an increase of 690% from the same time last year
The apartments sold include this one bedroom on East 28th Street with a fireplace and patio overlooking the Empire State Building.
“We have an elastic effect in Manhattan,” Rosenblatt told The Journal.
“ We pulled the rubber band one way in 2020, in a bad direction, and now it’s shooting back a bit the other way.
Rosenblatt said that as fears of the pandemic grew, house prices in Manhattan began to decline 11 percent from the start of the year in May 2020, but are now starting to rise again.
The number of pending sales – which are homes with a contract pending a closing date – that started to decline in late March and early April has now also risen, another analysis from UrbanDigs found.
Manhattan sales fell to a low in mid-July with only 1,319 pending.
At the end of the winter, this figure started to rise again and there are currently 4,163 sales in the city, an increase of 36.4 percent from the same time last year and the highest in the past decade.
Another report, from brokerage Douglas Elliman, found that 788 new cooperative contracts had been signed with the company by March 2021, an increase of 696 percent from the 99 signed in March 2020.
There are currently 4,163 home sales in the Manhattan, which is an increase of 36.4% from last year
The number of current sales in March 2021 is also the highest figure in at least a decade ((above)
Likewise, 553 new condo contracts were signed last month, up 690 percent from the same time last year.
A year after Covid-19 cratered Manhattan’s sales market, the borough is poised for recovery, thanks to price cuts, renewed confidence in the city and a wave of new home buyers.
In addition, contracts had been signed for more homes costing between $ 1 million and $ 10 million.
Last year, Douglas Elliman did not broker a single apartment or cooperative in excess of $ 10 million.
“Yes, the market is recovering,” said Jonathan Miller, the president of the Miller Samuel appraisal firm, who prepared the report. The New York Times
“But we can’t sell too much and say it’s kind of a boom – it’s just dramatically better than a quarter or two ago.”
He noted that despite the large contacts that were signed, the median sale price for a Manhattan cooperative was $ 780,000 and the median price of a Manhattan apartment was $ 1.55 million, each about five percent lower than normal prices.
According to The times, a one-bedroom apartment at 392 Central Park West – with a galley kitchen, four closets, and a porter – sold for $ 850,000.
Prices were low due to an increase in supply, with about 1,800 available in March 2021 (above), which is higher than the March seasonal average, but lower than the number available in July 2020
A one-bedroom apartment at 392 Central Park West – with a galley kitchen, four closets, and a porter – recently sold for $ 850,000 (above)
One reason the prices were low is because supply has increased with 1,835 new available homes in Manhattan to buy in March 2021, according to UrbanDigs.
However, this is only a slight increase from the 1,524 homes normally available in March, according to a nine-year seasonal average.
It also represents a big drop from the more than 2,300 homes available in July 2020, meaning demand is slowly on track to outpace supply in the city.
Rosenblatt told The Journal that the real estate market’s recovery will continue to accelerate in the coming years.
“You let the retailers come back to the ground floor, you let the office workers come back, you let the students come back,” he said.