The resilient Manhattan real estate market has entered a price recovery stage. After a record-breaking Q2 and an unprecedented 2020, the median purchase price increased by six percent in Q3, representing a healthy and balanced market correction.
Overall, sales volume skyrocketed nearly 215 percent year-over-year, exemplifying strong consumer confidence in the value of Manhattan real estate and emphatically dismissing the narrative that the city is dead.
A shortage of inventory further inspired buyers to act swiftly. New listings were down 30 percent year-over-year – this number represents a hyperactive Q2 and the seasonal summer slowdown. At just over 7,000 active condos and co-operatives, the market echoed similarities to 2014 2017, when inventory was at comparable levels, and the economy was rapidly recovering.
Another factor that drove buyers to purchase was the heated rental market. As rental prices soared in the third quarter, consumers took a renewed look at buying as a healthy alternative, abetted by low-interest rates.
In the ultra-luxury sector, units priced at $20M and over, sales ballooned 50 percent compared to Q2. Still, the median and average prices were down 45.8 percent and 38.4 percent, respectively, attributed to price distribution changes throughout the bracket.
In Q4 and beyond, the buoyant Manhattan real estate market will continue to soar as people who moved to second home markets during the pandemic look to return to a more active lifestyle and as office workers go on with returning to the office.
Most notably, the last quarter of the year will mark the return of foreign buyers, this on the heels of a United States administration announcement that the country’s borders will reopen to nationals from over 30 countries in November. Foreign buyers entering the buying pool means continued pressure on inventory as the city’s many attractions and beautiful homes make the city a desirable place to call home.
Click or swipe through the Compass Q3 Market Report below for more find information.