Regardless of hopes that New York’s actual property market would spring again to life over the summer season after the coronavirus lockdown was lifted in June, the variety of closed gross sales in Manhattan was down by 46 % within the third quarter in comparison with the identical interval in 2019, in line with new gross sales information.
Stock was up by 27 % — the best achieve since 2009, in line with a brand new report from the brokerage Douglas Elliman — and demand stays delicate. The median gross sales worth for residences, $1.1 million, was 7 % larger than on the identical time final yr.
“The Manhattan market is crawling out of lockdown and has clearly been the outlier within the area by way of coming again,” stated Jonathan Miller, a New York appraiser and the writer of the report.
Gross sales on the decrease finish of the market, beneath $2 million, fell within the third quarter by 50.7 %, in comparison with the identical interval final yr. Regardless of a weak market, Mr. Miller reported a rise in bidding wars for properties priced underneath $2 million towards the top of the second quarter and the start of the third quarter, with 3.6 % promoting above the final asking worth. City Digs, an information reporting website, famous that 52 % of contracts signed since Mar. 23 had been for properties underneath $1 million, whereas 26.3 % had been within the $1 million to 2 million vary.
Gross sales of higher-end properties, particularly these within the resale market, remained flat between the second and third quarters, suggesting that sellers within the luxurious sector aren’t as versatile about negotiating costs and don’t have the identical sense of urgency about promoting rapidly. The variety of condominium and co-op gross sales on this sector dropped 47 % this quarter in comparison with this time final yr.
One class of the market that noticed a relative boost was new development. Gross sales of recent residences in Manhattan represented 15.6 % of all gross sales this quarter, and median costs jumped by 18 %, to $2,886,098, from $2,449,020 within the third quarter of final yr.
However these costs aren’t reflective of the general market, as costs of bigger properties are inclined to skew the numbers on all new developments bought. For instance, 16 models closed this quarter at 220 Central Park South, Robert A.M. Stern’s luxurious condominium complicated, together with one for $99.9 million, and all of these gross sales went into contract earlier than the pandemic.
The month of September was essentially the most energetic, by far, since the actual property market picked up once more. Shaun Osher, the founder and chief government of CORE Actual Property, stated two elements led to this shift: the top of summer season and the start of the varsity yr. As individuals returned to town, the variety of in-person showings skyrocketed. “If I needed to guess, the variety of showings are up 10 occasions what it was in August,” Mr. Osher stated.
However the elevated curiosity hasn’t translated to gross sales but. In line with the Elliman report, the variety of new signed contracts on co-ops in Manhattan was nonetheless down 33 % in September, in comparison with this time final yr, and condominium gross sales had been down by 51 %.
Brooklyn is a distinct story, because the variety of new signed contracts in September slightly exceeded 2019 ranges there. Nonetheless, “by no means, form or type are we seeing the power that earlier markets have proven,” stated Frederick Warburg Peters, the chief government of Warburg Realty. “However the metropolis is displaying indicators of restoration, and I’m cautiously optimistic that subsequent spring will present strong numbers.”
Gross sales within the suburbs are additionally plateauing, indicating that the outbound migration from town could also be waning. The variety of new contracts signed for single-family houses and condos on Lengthy Island, for instance, was larger than 2019 ranges, however the spike in gross sales appears to have topped out in mid-July and has been declining sharply since then.