The Big Apple is back: Manhattan apartment sales soar to the highest number in 30 YEARS and top $9.5 billion as more people flood back to NYC
- In the third quarter 4,523 sales of co-ops and condos were made in Manhattan
- The total beats the record set in 2007, when 3,939 sales were recorded
- Sales more than trebled compared to 2020, according to Douglas Elliman data
- Elliman said the sales were due to ‘vaccine adoption, low mortgage rates, and improving economic conditions’
- The average Manhattan apartment in Q3 was $1.87m, according to Elliman
- In August NYC overtook San Francisco as the most expensive rental market in the U.S., with a one-bed in the city averaging $2,810, or $4,009 in Manhattan
New York City‘s real estate market is booming, with sales in Manhattan at levels not seen in 32 years, according to a new analysis by Douglas Elliman.
The real estate firm, the largest in the New York area, reported that 4,523 co-ops and condos closed in Manhattan during the third quarter.
That total beats the previous high set in in 2007, when 3,939 sales were recorded, and is the highest figure for 32 years.
The average price in Manhattan was $1.87 million, according to their report.
Manhattan has seen the strongest real estate sales in 32 years, according to new data from real estate broker Douglas Elliman
Low mortgage rates, pent-up demand from COVID, favorable economic conditions and high levels of vaccination in New York City are seeing people surge back into the Big Apple
Elliman’s data showed that more than 4,500 sales in Manhattan closed in the third quarter of 2021
In August, New York City’s rental market surpassed San Francisco’s for the first time since Zumper started tracking data in 2014. A one-bedroom apartment in New York’s five boroughs was $2,810, versus $2,800 in San Francisco.
In Manhattan, the average price for a one bedroom apartment was $4,009.
Douglas Elliman said that the strong market in New York City was due to low mortgage rates, favorable economic conditions, and rising vaccine adoption.
In New York City, 75.5 per cent of the adult population are fully vaccinated – higher than the nationwide average of 67.4 per cent.
Corcoran brokerage reported that sales of New York City apartments passed $9.5 billion in the third quarter — the most in any recorded quarter.
Real estate analysts say that Manhattan prices are so high because there is a shortage of inventory
Frederick Warburg Peters, CEO of Warburg Realty, said in a report that the high prices were due to a shortage of available apartments.
‘While demand stayed strong throughout most of our marketplace, a critical inventory shortage remained,’ he said.
‘Week after summer week, the number of contracts signed and listings ‘taken off the market’ exceeded listings brought to market.
‘So, week after week, inventory shrank.
‘Buyers waited with anticipation for a post-Labor Day rush of new listings, but it never materialized in a major way.’
Gregory Heym, the chief economist at BHS’s parent company, told The New York Post he does not think the boom in sales will continue.
‘This pace of sales can’t continue forever, as eventually the pent-up demand due to the pandemic will go away,’ he said.
‘We expect that next year’s spring market will be a return to more ‘normal’ levels of activity.’