Once written off as dead, (never by us!) Q2 data proves that the residential real estate market in the city that never sleeps is alive and thriving. Overall, Manhattan apartment sales volume in Q2 rose 144 percent year-over-year and 50 percent compared to Q1. The average sales price also increased 6.6 percent year-over-year and 18.5 compared to the first quarter. What is driving the upward trend?
A mix of factors including: pentup demand, reasonable pricing, low-interest rates, and an expanded pool of buyers. Compass agents report a high volume of West Coast purchasers fueling home sales in the city. This comes as the tech industry strengthens its presence in Manhattan, led by Google, Facebook, and Amazon. In addition to tech industry buyers, an uptick of millennial shoppers compounded with generational wealth transfers and suburban empty nesters looking for added excitement in the city point to a healthy stream of real estate activity for the foreseeable future.
The bulk of sales continue to be in the lower end of the market, with the $1M to $3M category commanding 40 percent of total sales. While inventory was slightly higher, pandemic pricing seems to be a phenomenon of the past. For three straight quarters, average discounts have stayed steady at nine percent, which means that sellers are willing to price appropriately and reasonably. Additionally, the luxury category in the $10 million to $20 million range saw a steep average sales price increase driven by a hyperactive market, particularly downtown, Upper East Side, and Upper West Side.
In summary, the city is booming, and Q2 market data proves that the resilience of New York is strong. With vaccination rates in the city reaching over 70 percent, an expanded buyer pool, and renewed optimism all-around, the future of the residential real estate market in the city is bright.
Here are some of the highlights:
- Properties sold up to $5M were all more affordable in terms of price per square foot compared to last year
- The $10M-20M price range saw the largest price increases, up nearly 6% and 10% in average and median price, year-over-year
- Sales in the $1M-3M range were the most common, with nearly 40% market share, followed closely by the $500K-1M bracket Units between
- $500K and $1M saw one of their lowest market shares on record at 33.5%
- Downtown saw 31% of sales, the highest of any submarket, while the Upper East Side captured 20%
- Prices in FiDi/BPC were up the most of any area, with a 33% higher median price compared to this time in 2020
- The Upper West Side experienced the largest price decreases, the median and average prices falling 28% and 12% year-over-year, respectively
Our team is fortunate to have remained busy throughout the pandemic. We continue to list well priced property and are busy helping our buyers find the right home at the proper market value. A market in transition can be challenging to navigate. Our team is always here to help! Please reach out with any questions.