New York City real estate activities, of course with proper social distancing, resumed in the second quarter of 2021. With that, we have seen the high end of the Manhattan market ($5 million+) totally rebound and exceed pre-COVID19 pricing by as much as 5-10%. That is not a typo. The market for Manhattan apartments up to $2 million is down, on average, 4-6% from pre-COVID19 pricing. The market from $2-5 million is the quietest market segment in Manhattan.

What we are experiencing right now, in Fall 2021, appears to be buyer fatigue. Perhaps this slow down by buyers means that many buyers have chosen to pause their home search until Spring 2022? 

Inventory, year over year for October 2021, it is now down a whopping 31.7% from October 2020, as seen in this chart as of Oct 25, 2021:

while absorption rate is also falling, now down 53.1% year over year for October 2021, and down 11.7% from the prior month, as seen in this chart as of Oct 25, 2021:

So, the simple answer if asked whether NYC is a buyer’s market is “No”. The more detailed answer is that while NYC seems to be a more neutral market, 4-6% discounts on most apartments priced under $2 million is where we are today. With mortgage interest rates remaining at 30-40 year lows, this remains a very good time to buy in Manhattan.

Best,

Lee