"Once written off as dead, Q2 data proves that the residential real estate market in the city that never sleeps is alive and thriving." - Quote from the Compass Report
The Manhattan Real Estate market has shown resilience and growth in the last quarter.
The numbers don't lie. After getting beat up during the pandemic's peak, we have seen explosive growth in activity in the last three quarters, with Q2 being the highest growth so far.
Sales volume was up 114% compared to the same quarter last year and 50% compared to the Q1-2021.
The most in-demand segment is the $1MM-$3MM - taking 40% of the total transactions.
Luxury deals - above $10MM - are feeling the pressure of low inventory and the return of the power buyer to NYC, bringing the average prices up for the most coveted homes in Manhattan.
Is it a seller's market?
Yes, it is. According to the numbers from Urban Digs, we are looking at a clear seller's market right now. They use a measurement called the MarketPulse, which is the ratio between current supply and current properties in contract - the current demand.
Anything less than 0.4 is considered a buyers market, and anything above 0.6 is a seller's market. At the moment of publication, this is where those numbers are:
So what is driving the recovery?
There are several factors. The high levels of vaccination, the reopening of social and economic activities, and large companies calling people back to their offices, even if it is partially remote.
Added to that the excess of cash in the street, the low-interest rates, and the return of the power buyers.
The New York City market is climbing up.
For now, it all looks nice and upwards. However, we are yet to see how the Delta Variant will affect us. The theory says that it should not affect us in any radical way because of our level of vaccinations.
I trust that is the case!