Manhattan’s Apartment Market is Soaring
As the New York City real estate market booms amidst the city’s reopening, Manhattan in particular continues to attract activity and break records.
According to the recent Brown Harris Stevens Second Quarter 2021 Residential Market Report, Manhattan saw a surge in apartment closings, with activity returning to and even surpassing pre-COVID-19 levels. For instance, the 3,944 sales reported in Q2 were 38% higher than Q1 of 2021 and more than double that of a year ago.
At 220 Central Park South alone, there were four resale closings, with an average price of $53.4 million.
The explosion of luxury closings brought the average resale price up 21% from just the prior quarter, to its second-highest level ever. Only the second quarter of 2019 posted a higher average resale price, which was driven by pending mansion and transfer tax increases. The median price, which measures the middle of the market, posted a 4% gain over the past three months to $998,250.
All price levels saw a big jump in sales, especially resale apartments priced over $5 million. This rush of luxury closings helped bring the average resale price up to $1,720,606.
The detailed report also covered specific neighborhoods within Manhattan, such as the East Side, which saw the highest amount of resales at 23%.
The promising report provides a positive forecast for the NYC market. A record number of contracts were signed in the Q2, and it is expected that closings will continue to increase in Q3 thanks to the economic boost seen as a result of the removal of most COVID-19 restrictions.