My clients deserve an ideal home that suits their lifestyle, fulfills their needs, simplifies their lives and makes them happy. Whether buying or selling, my goal is to help them get there. – Steve Segretta
The Brooklyn apartment market’s amazing run continued in the third quarter, as both prices and sales reached new highs—a great accomplishment just a year and half after the start of the pandemic. The average price crossed the $1 million mark for the first time, reaching a record $1,000,989. Although we won’t be completely sure until all the data is in, it appears that the number of sales also hit a new high in the third quarter. Brooklyn’s future also looks strong, as contract-signed activity remains at record levels for this time of the year. With all the borough has to offer we should have expected a quick recovery in Brooklyn, but I don’t know if many predicted it would be this strong this fast
The Manhattan residential market’s comeback accelerated in the third quarter, as the number of closings hit an eight-year high. Prices for resale apartments averaged $1,724,750, a 3% gain from the prior quarter, and 17% more than a year ago. Perhaps the best indicators of the current market are the sharp decline in both time on the market, and the discount off last asking price. The average days on the market fell 25% from a year ago to 117, while sellers received 97.4% of their last asking price, the highest percentage in almost four years. These figures tell us that prices have adjusted to meet the market, which in turn has brought more buyers to the table with serious offers. The biggest takeaway from this report is that the Manhattan market is back, to the point that most areas can now be characterized as a seller’s market. There is still value out there for buyers, but they need to be realistic when making offers or they may lose out on the home of their dreams.
New listings for apartments in various Brooklyn neighborhoods are up substantially in September over August and prior peak listing months during the spring. That should have implications for apartment demand and pricing. Please call for more information and to discuss.
Signed contracts fell 3% last week, but remained 56% higher than a year ago. Resale contracts rose 6% from the prior week, while new development deals fell 33%. Units priced between $3 million and $5 million posted a 50% jump in signed contracts, the most of any price range. Upper Manhattan contracts were up 44% last week, the largest gain of any market area.
The number of available units for sale in Manhattan tumbled 14% at the beginning of September, contributing to a 23% drop in months’ supply to 4.7-months. The months’ supply for condos declined 22% to 5.2 months, while co-ops, at 4.4-months, decreased 24%. The West Side remained the tightest market with a 3.6-month supply of apartments for sale.
Brooklyn apartment prices averaged a record $965,575 in the second quarter, as demand remained incredibly strong. Closings more than doubled compared to a year ago, and were also up 26% from 2021’s first quarter. The number of contracts signed during the second quarter set a new record.
You can view the full report by clicking the photo above.
Apartment closings surged in the second quarter, rising 38% from just the first quarter of 2021. Sales were 129% higher than a year ago-understandable given COVID-19’s impact on 2Q20-but still an incredible comeback in just a year’s time.
All price levels saw a big jump in sales, especially resale apartments priced over $5 million. This rush of luxury closings helped bring the average resale price up 21% from the prior quarter, to $1,720,606.
It’s important to note that the rise in the average resale price doesn’t mean that prices are rising for all apartments. Anytime you have an abnormally high amount of luxury resales-220 CPS had four with an average price of $53.4 million-it can have a disproportionate impact on the overall average price. The median resale price, which measures the middle of the market, was just 4% higher than 1Q21.
The big takeaway is the market is back big time, and with a record number of contracts signed in the second quarter, expect closings to continue to increase in 3Q21. The removal of most COVID-19 restrictions, and the return of Manhattan office workers will give our economy a huge boost, which should continue to keep buyers coming to Manhattan.
You can view the full report by clicking the photo above.
