Guests take part in a pool night at the penthouse apartment in the 50th Plaza building of the United Nations in New York.
Michael Nagl | Acesparks | Getty Images
Real estate prices in Manhattan hit a record high in the second quarter as buyers returned to the city, boosting demand for the largest, most expensive apartments, according to new reports.
According to reports by Douglas Elliman and Miller Samuel, the average selling price of Manhattan apartments was $ 999,000 in the second quarter – a record high. Average sales prices rose 12 percent in the quarter to more than $ 1.9 million.
Price jumps and declining commodity stocks indicate that real estate recovery in Manhattan is on the rise as more families want to trade up to larger apartments and buyers take advantage of lower prices and lower mortgage rates.
“It’s a sign of anger and violence in the market,” said Jonathan Samuel, real estate appraisal firm Miller Samuel. “It’s recovering much faster than most participants expected.”
There were 3,417 sales in the second quarter – a 150% increase over the previous year, when many New Yorkers fled the city during the pandemic, and Covid restrictions prevented apartments from showing up for much of the quarter. did. However, this rate was also robust compared to pre-pandemic levels. According to Miller Samuel, this was the second strongest quarter since 2007. Trade wars were at their highest in two and a half years.
The breach of the purchase led to a decrease in the number of apartments in the market. Listing inventory is down 27 percent from a year ago, and the supply of homes for sale – at 6.9 months – is lower than the current historical average of eight to nine months, Miller said.
The strongest growth is at the top of the market – literally. More than 220 penthouses have been sold in Manhattan this year, the strongest of any record, according to Corcoran Market Research. This represents an increase of 35% from the 164 penthouse connections signed in the same period in 2019 before the pandemic.
“When the city reopened, the penthouses proved to be the perfect formula for a generous square footage and private outdoor space, as well as all the luxury amenities available only in a fully serviced building,” said Pamela Libman, president and CEO of Corcoran. “The prospect of making their homes in a ‘heavenly castle’ for wealthy people has never been so inevitable.”
The strength of the high-end market – above $ 5 million – means a sharp turn in the face of a pandemic. The oversupply of high-end apartments and sellers who didn’t want to lower prices led to a drop in the price range by 2020, while the lower end was strong from $ 1 million to $ 2 million. Now, brokers say, high growth is driving growth in many ways, as the rich became richer during the pandemic because of stock markets and easy monetary policy.
The average selling price of three- and four-bedroom apartments rose to two-bedroom numbers in the first quarter from the second quarter.
According to Miller Samul, the list of luxury apartments is still high – at 13 months. Fearing that the market will be over-saturated, many new buildings are not officially included in their list of all vacant units, so their actual number is much higher, Miller said.
“You have to consider‘ inventory management ’,” he said.
The strength of the penthouse market has also changed the new development economy. Historically, manufacturers sold a penthouse after most or all of the building’s other apartments were sold. Holding the penthouses for the last time made them special and created a sense of inadequacy for buyers to pay more. Now that the rich are willing to pay for more space and outdoor space, developers are selling penthouses earlier – sometimes even as a first sale.
“Developers now know it’s a reasonable price for penthouses, so they don’t hold them anymore,” Miller said.