Q: What does the Manhattan market look like as we head into summer?
A: The year of 2021 is delivering new indicators of a recovering Manhattan residential market. A surge of Residential Market activity has resulted in record numbers of signed contracts. All signs point to the dawn of the strongest year in Manhattan residential real estate since 2007. All indicators are that the Spring/Summer real estate buying season will be on overdrive as first quarter numbers proved that New York is back! Analysts are predicting that New York City is on a steep upward trajectory and that the overall economy will continue to grow over the next three to five years.
Q: Tell us about the Luxury Market in New York City.
A: The 10M+ market is way up, year to date, from last month and from last year. Buyers are more active at this price point than they have been since the height of the market in 2007. The major difference in the market between then and now is pricing. Luxury inventory during that period was in short supply, which lead to aggressive pricing in the ultra-luxury tier. Currently, inventory in this tier is extremely high, a significant number of which is in preferred new developments. That has kept pricing down and luxury buyers are more active than they have ever been, but have more negotiability and choices than ever before. The properties that are selling are pricing appropriately to the market and selling quickly. Specifically, The Field Team has seen a greater increase in upper-tier activity altogether; likely the result of buyers who were previously sidelined by the uncertainty revolving the pandemic now re-entering into the market arena with great pent-up purchasing demand. The trends we note in the market vary and are segment specific: indeed sales volume is up over 100% year over year, which is not a huge surprise as last year at this time activity was only from opportunist investors mining for distressed sellers. Even so, from a historical perspective, transaction volume is significantly elevated at all price points.