Manhattan Real Estate Update: You Missed the Bottom; Don’t Miss the Recovery

Posted on July 11, 2021 at 9:51 am by West Sider

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While we are starting to see hints of a return to seasonality, the market beat continues. Although June saw the highest pace of new listings in recent memory, the pace of overall supply contracted by 25% . This is due to overwhelming deal volume and an increasing number of properties coming off the market (the seasonality mentioned, typical of summer months in years past). In pre-Covid times 250 contracts/week was considered to be robust activity; over the past 4 weeks we have averaged 360 contracts/week. It’s hard to communicate the level of activity that represents. Over the past 4 weeks we have seen 1,440 deals signed, totaling in excess of $1.3 Billion in residential real estate sales…in Manhattan alone. Deal volume is up in virtually all the segmented categories you can define.

Courtesy: UrbanDigs

At the onset of 2020, just prior to Covid, optimism in our marketplace abounded; we were finally emerging from a methodical market decline from the highs of 2015/2016. Then came Covid; it seemed like Armageddon was upon us; however, the marketplace (we/us) fought it off and I believe we have won. The reasons for this resurgence are varied. Of course we have increasing numbers of fully vaccinated residents, lower unemployment, near record low interest rates, an accelerating economy, Federal stimulus dollars and more; but primary reason for this resurgence lies in the people of New York, who believe in, and want to be in, this great place. Life is increasingly reflecting what was once normal. People are going back to work in greater numbers. Employers are expecting near full attendance in offices post-Labor Day; the thought is that if you can frequent restaurants (which are packed), you can come to work. I believe people want to go back; that is the New York way. NY’ers desire the fray, the complexity, the collaboration, the fight. Fran Lebowitz told TimeOut, “There is no place harder to live in than New York. Not one thing in New York isn’t a problem. If you want to go into a store and buy some fruit, there is going to be some sort of opera.” NY’ers LOVE that opera; we each have a role, we get, we love it; we love to talk about it and conquer it. That is the spirit that has helped bring this marketplace back.

As a seller….price right, get in and get out. That is where you will get your best deal. For Buyers, especially those struggling to find what they want, look at the properties experiencing price reductions. This re-pricing and/or realistic pricing, makes them “new” to a whole new set of buyers. Many buyers do not consider this option and might miss that best opportunity. Also, typically these sellers are more negotiable. If you’re a buyer now, you have indeed missed the bottom, but you have not missed the recovery. We have seen the Covid discount disappear and are just now beginning to see price appreciation across the board. That said, the high-in-demand, special and one-of-a-kind properties have already passed this threshold and are seeing bidding wars at, and above, the asking price. And…wait-for-it…here come the foreigners; this will further boost demand and put upward pressure on pricing. So don’t miss the recovery!!

Featured Property:

With gorgeous tree-level views along West 75th Street, this home captures the essence of Upper West Side living. This three (3) bedrooms and two (2) and a half (1/2) bathroom home features high ceilings, hardwood floors and an entry foyer. From the moment you enter, you are seduced by the grand proportion and warm details of its Prewar era. The glorious open living room, dining room and kitchen stretches 44′ feet, from north to south. The enormous, open eat-in-kitchen allows for enjoyable entertaining. It is adjoined by the dining area which can seat from 10-14 people. Directly off the living space is a comfortable library and/or third bedroom. In the separate and private East wing of the apartment you find the primary and second bedrooms and a home office. It has 12 windows, 9 closets, a wine bar and a clothes washer. Note: please see the alternative floorplan in the event your preferences require the third bedroom and/or additional home office. Asking $2,145,000.

For more click here.

To watch the PROPERTY VIDEO click here.

Roberto Cabrera
Licensed Real Estate Broker
Brown Harris Stevens