Everything is coming to light in the Manhattan residential market.
The municipality saw a record $ 3.5 billion in contracts signed in April in 1,616 transactions, a boost that continued into May, according to a report from UrbanDigs.
The April figures eclipsed the previous record, set in July 2014, for contracts worth $ 3.36 billion. May also broke that record, with deals worth $ 3.37 billion signed in 1,596 transactions, according to the report.
The report examines last-look prices for homes that were rented in Manhattan from 2004 to 2021. While there is always the possibility that some of those deals will fail, author John Walkup said he believes the true value could be even higher.
“There are also a lot of deals that are happening that are just not being reported,” he said. “Especially with new developments, they have many signed but undisclosed contracts. There could be a significant amount behind the scenes here. “
Most of the contract volume was due to an increase in transactions priced at $ 2 million or more. For homes worth more than $ 4 millionFor example, the number of deals increased 100 percent in April 2021 compared to April 2019.
However, the lower the price, the smaller the difference in the number of transactions. For properties asking between $ 2 million and $ 4 million, there was a 66 percent increase in bids compared to April 2019. For properties asking between $ 1 million and $ 2 million, there was an increase of 42 percent in that same period.
Some factors at play include historically low interest rates and a greater desire for more space, Walkup said. The shortage of quality turnkey homes with amenities may have led those who could afford them to snatch those properties like hotcakes, he added. It also helps that many buyers in higher price ranges were probably not too financially affected during the pandemic.
“There was a lot of volatility in the financial markets, that if you’re in trading or in finance it can translate into a good year,” Walkup said. “Every time there’s so much price movement, it’s really cool, especially for the trader class.”
With ongoing vaccinations and families preparing to travelFactors that traditionally slow down New York City real estate in the summer will come into play again, Walkup said. While he expects contract volume to decline, he anticipates that it will land at above-average levels.
“I think it’s going to be a busy summer,” Walkup said, “but I don’t think it’s going to be as sparkling as it was in March, April and May.”