As temperatures rise, so does demand for Manhattan real estate.
According to an analysis by real estate data company UrbanDigs, the average number of contracts signed in all parts of Manhattan rose by a staggering 78% compared to the same period last year.
Popular neighborhoods include Morningside Heights, where 56 deals were signed this year, up from just 18 in 2020, up 211%, and the Upper East Side, where 450 deals were closed this year, up 124% from 2020 corresponds to 201 closings.
According to another UrbanDigs analysis, Morningside Heights is also experiencing an inventory crisis with more than 1.5 times more contract units than available.
The only neighborhoods where shoppers’ attention has waned were Hamilton Heights and South Street Seaport, where supply is generally more limited.
Contracts are signed even in neighborhoods where deals close more slowly, like Two Bridges and Hudson Yards, which have had a longer average time to market. Two Bridges saw the largest percentage increase in contracts signed, with four signed in 2021, up from just one last year, a 300% increase. Hudson Yards saw contracts signed up 244%, 31 this year from nine in 2020.
Juni Gottlieb, realtor at Warburg Realty, noted that demand for apartments with at least three bedrooms increased in a matter of weeks as more people were vaccinated and more buyers realized their children were going back to school, which made it a high-traffic Market segment led.
“This bigger housing market awakening took place in Carnegie Hill, the Upper East Side, Yorkville, and the Upper West Side,” said Gottlieb. “Not only did the deals close at a fast pace, but the brokers were so busy that some buyers could not schedule viewing before the bids were accepted and the contracts sent out. We haven’t seen a sufficient exchange of stock yet. “
In a recent column for Advance Guide, Warburg boss Frederick Peters dealt with the reawakening of New York City and explained that the market in Manhattan is no longer tied to seasonality. “More and more workers return to their offices at least a few days a week. And with such a hot market, buyers at all levels fear missing out while both prices and mortgage rates remain reasonable (relatively speaking) “he wrote.
As more and more people return to the city, Peters expects the market to remain active. “There is a rush for townhouses that local agents have not seen in years.
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