NYC Real Estate - August 2021
Nishant Sondhi
Real Estate Investment Fund Manager | Specialized in Passive Investing for Multifamily & New Developments | Data-Savvy, Transparent, Committed
Manhattan Overview:
Where are we right now in the Manhattan market? -- The most asked question. Is it a buyer's market or a seller's market? Have things moved towards pre-pandemic levels?
Fact: Supply is not coming at the same pace to match the demand. However, there is still enough activity to signal that we are in a healthy market. August typically does see lesser newer inventory come on before the next wave of new listings hit the market in September. If you are a buyer waiting at the sidelines, September and October could be your window of opportunity.
Market Activity
A total of 1,072 new listings came to the market in August, which was about 25% less than the previous month. However, typically we see about 800 properties being listed in August, and this year the number crossed 1,000.
A total of 1,178 contracts were signed in August, which was about 6.5% lesser than the previous month. However, contract activity levels are much higher for August as compared to the earlier years.
A look at Supply shows the trend is down and approaching its historical average level. Very important to note that the falling supply trend is opposite to deal volume and off-market trends and represents the recovery. In summary, buyers are in a market with declining inventory and high demand that has not yet faded.
Price Action:
Price action is a lagging indicator forcing us to wait for closings and city filings to give us the deal information. Here is a look at Resale Median Price per SFT trends for Manhattan with a horizontal line showing the latest figures. Notice the market is recovering from last year’s decline and back to levels pre-covid.
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Conclusion:
On analyzing the supply and demand balance, trends signal that we are at comparable levels near the 2015 peak.
Analyzing price action and market activity on the ground level, it does appear that the market has recovered the Covid discount and is moving towards price levels last seen around 2019.
Note Data and Charts used in this report - UrbanDigs.
Have questions about NYC market forecasts and trends, or anything else real estate-related? I'd love to connect! Don't hesitate to reach out.
About Nishant Sondhi: Nishant is a Real Estate salesperson in Manhattan and Brooklyn, and specializes in Residential Real Estate. He is passionate about helping buyers and sellers navigate the New York market, and save them thousands of dollars, time and make the process enjoyable. His strong analytical, marketing, and negotiation skills developed during his MBA and over 10 years of sales experience give him a unique edge to best serve his clients.