On the Ground - Market Update - May 2021
The marketing is changing and it’s getting hotter and faster.
The promising market I depicted in January has come to fruition. By all markers, activity levels continue to surge and the data is encouraging.
MANHATTAN
Average sale price in Manhattan was $1.7 in Q1 down 9.4% from Q1 2020 $1.9M
Average sale price for new devs was $2.1M in Q1 down 24.6% from Q1 2020 $2.8M
Both metrics point to higher absorption rates, showing that sellers are meeting the discounts demanded by buyers and trading accordingly
Listing Discount off last price down to 4.6% v. 7% Q1 2020
Average overall price per square foot down to $1,387/sf from $1,536/sf Q1 2020
Absorption is escalating in Manhattan, in both Condo and Coop markets
Signed contracts increased by 45% from January to April
All price points thriving, coop contracts $1-4M up over 1000% YOY, condo contracts $1-4M up over 600% YOY
Condo luxury market $4M+ received 89 signed contracts in April
Coop luxury market $4M+ received 39 signed contracts in April
BROOKLYN
Brooklyn total deals larger part of pie than a year ago accounting for 53% of total deals an increase of 2 pts over LY 51%
Brooklyn contract pricing overall less discounted than Manhattan
Average Brooklyn new listing sales price increased by 10% hitting $1.1M over LY $1.0M
This is in stark contrast to Manhattan sales prices which have declined by 9% likely due to overall need for discounting
COVID 19 affected Brooklyn inventory differently than Manhattan
Brooklyn inventory weeks of supply have remained flat throughout the pandemic, while Manhattan inventory peaked in Summer 20 and remains elevated over LY
Additionally, Manhattan properties are sitting on the market for an average of 138 days v. 89 in Brooklyn