Is the Manhattan Market Recovering?

Written by Ashley Sutphin Posted On Monday, 19 April 2021 00:00

After an arduous and, at times, devastating year, Manhattan is showing signs of recovery, but many are wondering if that will extend to the real estate market.

In March, around 1,500 Manhattan properties were in contract, which was the highest number of deals for any one month in 14 years, according to UrbanDigs.

During the initial days of the pandemic, the Manhattan real estate market came to almost a complete standstill. Buyers are now starting to come back into the market, albeit cautiously, with confidence following the rollout of vaccines.

On the ground, agents see that there are increases in requests for appointments, increases in offers and then subsequent jumps in contracts. Those who are working in Manhattan right now feel that they’re in a phase where the discounted prices seen over the past year are going to start declining.

In February 2021, there were more contracts signed in Manhattan than any other previous February. The sales also represented a 31% increase compared to February 2020.

A lot of Manhattan real estate experts feel that now is the time to buy. Even though contract activity has gone up, agents say that the prices still haven’t, which means for Manhattan buyers, timing could be of the essence.

Many real estate professionals in the city also say that you have to think about how other crises have affected the market and what’s happened then with their rebound. For example, after 9/11 the real estate values dropped significantly in New York City, but only for a brief period. Historically, once activity picks back up, it seems to do so at an accelerated pace.

Summer isn’t typically Manhattan’s busiest time in terms of real estate and buying, but because of the pent-up demand from the past year, that could change.

Other factors could also play a role. For example, job growth is expanded, and unemployment is going down quickly in New York.

The luxury market is always one that’s a primary area of discussion in New York. In the summer of 2020, the majority of transactions were in the market below $2 million, likely because the wealthiest buyers were leaving the city.

Now, the high-end market seems to be picking up steam. It’s estimated that in February, 66% more contracts between $5 million and $10 million were signed compared to January, and 33% more over February 2020.

As far as the neighborhoods to keep an eye on, some say that Midtown could be a compelling option. This is for a few different reasons. One is that many offices are being turned into residential properties, including affordable housing. Also, Midtown isn’t recovering as quickly as some other parts of Manhattan, so as a buyer you could still see opportunities to get a deal.

While the trends for the New York market are looking up, there is still an influx of people into other areas like upstate.

For example, in Putnam and Dutchess counties, there was a 269% increase in home sales in the price range of $1 million and higher.

Finally, there are some trends in New York that translate to the rest of the country. For example, most experts say that virtual home tours aren’t going away.

Rate this item
(0 votes)

Realty Times

From buying and selling advice for consumers to money-making tips for Agents, our content, updated daily, has made Realty Times® a must-read, and see, for anyone involved in Real Estate.