You should never bet against New York. Last year, sales and rental markets approached, and in some cases, exceeded pre-pandemic prices. New variants, the privilege of remote work, and a slow 2020 market made it seem like 2021 could never top the charts - those assumptions were wrong. The city’s resilience – and its real estate market – have been truly amazing. December 2021 marks twelve months of strong buyer demand and record shattering sales volumes. Just take a look at these 2021 Q4 Highlights -
A Sales Volume Peak
Despite the year-end acceleration of the latest COVID variant, the Manhattan market rushed to catch up with the surrounding region and then some. Sales volume rose to the highest total for a 4th quarter in thirty-two years. There is no expectation of a buyer slow down and sellers are going to be making deals in Q1 2022.
Let’s Talk About Inventory
The number of available homes fell by its most significant annual rate in seven years. There are still homes to choose from, but that choice is shrinking. Premium homes in prime neighborhoods are in short supply and bidding wars are making a comeback when a seller is priced right. We’re actually experiencing the largest market share of bidding wars since early 2018.
Co-op or Condo?
Co-op price trend indicators moved above the prior-year level as larger apartments saw more significant gains.
Luxury and New Development
Luxury median sales price equaled the prior-year quarter but were significantly above the same period two years ago. The largest sales volume increase happened in new development, where we saw their highest market share in two and a half years and nearly doubled from the same period two years ago.
Is Now the Time to Buy or Sell?
New York City real estate boomed in 2021 - and we expect even more demand in 2022. We are entering a seller’s market and we anticipate a constrained supply of available homes and higher interest rates. If you’re considering a purchase, now is the time to act to lock in low rates and access more available inventory. If you’re looking to sell, let’s prepare your home for a Spring launch and achieve the highest possible traction.