The Best Quarter For Closed Sales In 15 Years
Any doubts that the Manhattan real estate market could keep up the same blistering pace in 2022 that it had sustained throughout 2021 were put to rest by Corcoran’s Q1 report.
“2021 was a historic year in the Manhattan market, and the fervent activity that fueled last year’s sales has continued into 2022. This was the best first quarter for closed sales in 15 years and signed contracts – demand’s best indicator – improved versus a record-breaking 2021, marking the strongest start to any year on record.
With robust sales and improving prices, barring any unexpected shocks, this stellar first quarter should have everyone feeling very optimistic about another momentous year ahead.”
— Pamela Liebman, Corcoran CEO
Q1s are usually slow as the post-holiday spending malaise along with frigid conditions often perturbs home buyers from making purchases. Also, sellers often postpone listings until the spring. This year the added threat of rising interest rates, a war in Ukraine, triggering escalating building costs, along with an early January Covid resurgence weren’t enough to keep buyers away.
QI Takeaways
- Closed sales rose 36% annually (their highest quarterly level in 15 years).
- Fueled by higher prices, sales volume soared by 60% (a year-on-year increase to $7.37 billion) — the highest for any quarter in 14 years.
- Signed contracts were up over the previous year, clocking in an impressive 4,000 deals.
- Falling inventory due to high sales saw listings fall 25% over the previous year (from mid- March figures) even though 5,000 listings hit the market, the most of any Q1 on record.
- Manhattan prices are up overall categories with 2&3 bedrooms and the luxury market particularly robust.
See the full report here
Reasons That The Market Is Doing So Well
Manhattan had a surplus of inventory before, during, and after the pandemic. This was largely spurred by the 421-A tax abatement deadline construction boom. Now the inventory is lessening the competition and prices are increasing. A particularly strong stock market — post-pandemic — has seen investors and bankers looking to park their cash in real estate. However, that wasn’t the sole reason. According to The Real Deal, contributing factors have also been crypto, tech, and private equity.
High Flying Luxury Condos
Amid the house-buying frenzy, certain developments have continually cropped up with some of the highest-priced condo sales in the city. These include:
- One Beacon Court Manhattan
- 15 Central Park West
- 35 Hudson Yards
- 200 East 83rd St
- 1165 Madison Ave (The Bellemont)
Interesting to note that three of the buildings mentioned above are Robert A.M. Stern designs. They are the perennially popular 15 Central Park West, and the new 200 East 83rd St and Bellemont on the bustling Upper East Side, proving that classic New York architecture matched with high-end design and amenities is a winning combination.
In Brooklyn, one luxury building dominated above all others, Dumbo’s The Olympia which broke sales records, competing with some of Manhattan’s finest.
Townhouse Demand
Townhouses also fared well as they did in 2021, with low inventory sparking quick sales throughout Manhattan and Brooklyn. In fact, last week (March 27th-April 3rd), the most expensive contract signed was for a brownstone on the Upper West Side, asking just shy of $26 million, having been listed for $27.5 million in August. The 11,100- square foot home spans a towering seven stories, has six bedrooms and six bathrooms, and has been gut renovated since the previous owner purchased it for $10 million in 2014.
And talking of historic homes, The Wall Street Journal reports that a Gilded Age mansion on New York’s Riverside Park, built in the late 1800s has just hit the market for $65 million. The residence sits on a hilltop on the corner of West 75th Street and Riverside Drive.
The self-contained space over several floors that a townhouse offers has made them a prized commodity post-pandemic. As they are a limited commodity, expect prices to only rise in the future.
Ilan Bracha is renowned throughout the real estate industry as one of the most dynamic and successful real estate brokers and real estate agents in NYC. He has sold billions of dollars worth of real estate. He brings that experience to his energetic team within the Corcoran family. If you are interested in buying, selling, or renting a home in New York City, consider booking a private real estate consultation with Ilan Bracha today. You may reach out by phone at 212.355.3148 or send an email to [email protected]. We look forward to hearing from you and addressing your real estate needs in NYC.