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Market Report: A Summer Slowdown Underscores a Still Sizzling NYC Real Estate Market

As temperatures rise, sales traditionally slow. That was the case with last week’s Manhattan sales figures adhering to traditional seasonal norms with 289 contracts reported signed from July 24th to 30th, down 5% from the previous week. It marks the third time in 4 weeks that sales were below 300 which is customary for the sticky summer months with potential buyers, sellers, and agents heading out of the city. One bright note is the increased sales of resale condos, up 6% from the previous week. Resale co-ops dropped by the same percentage.

Real estate professionals are not complaining. Manhattan real estate sales have been on a rip-roaring spree with sales numbers increasing for 43 consecutive weeks, marking a cumulative annual increase of 122%.

NYC is one of the Most Desirable Cities in the US

Out of the 289 signed contracts, 20 were in the $3-5 million dollar range and 12 in the $5 to $10 million range, indicative of a stable market, which is the opposite of the scenario a year ago and before the pandemic when a sales malaise, due, in part, to over-construction, had hovered over of Gotham for the past few years. Now, buoyed by a lack of inventory around the country, Manhattan has once again become desirable. In fact, according to a recent report by real estate research website Point2, out of the 37.4% of homes in the US market priced above $1 million, NYC came in 5th in the big cities category, with the top 4 located in California.

With regards to national properties priced over $3 million, which makes up 13.5% of NYC’s inventory, the Big Apple came in the fourth spot behind San Francisco, Boston, and L.A.

The most expensive Manhattan home to sell last week was a 3 bedroom penthouse condo at a former printing house turned new development at 90 Morton Street in the West Village which was asking $18 million. A landscaped terrace is one of the 3,678 square feet home’s attractions, along with access to the building’s amenities which include a pool, gym, rooftop terrace, and resident’s lounge.

High Demand for Brooklyn’s Luxury Condos 

Brooklyn’s weekly sales echoed the slowdown across the East River with 102 contracts reported signed last week, down 15% on the previous week but a mighty 42% increase on the previous year. It wasn’t all about the summer slowdown, however, with contracts signed between $2M to $3M and above increasing by 300% and 200% respectively over the previous week. On the lower end, contracts for homes priced beneath $500K increased 20% over the previous week.

The Fall Market Looks Promising… but be Ready for a Plot Twist!

What can’t be denied is that New York City real estate is back and geared up for a full thrust fall sales market. The StreetEasy Price Index shows rising quarter-over-quarter sales in Manhattan, Brooklyn, and Queens. It marks the first such sales increase in Manhattan since 2018, buoyed by record-low interest rates and a reopening economy fueling pent-up demand, decreasing overstuffed inventory.

The long-term future of NYC looks better than it has in a while. However, with a Covid variant on the rise and eviction and foreclosure moratoriums ending, one thing you can be sure of is that there will be few more plot twists in this roller coaster ride of a real estate market. Hold on to your seats!