Everybody loves a party but hates the hangover.
Manhattan real estate may have gotten hit while suburban markets soared in 2020, but 2021 is an entirely different story. For the last five months, deal volume has been near or above records dating back to 2011.
When reviewing how many deals have been signed monthly in Manhattan and how the 2021 recovery has fared, the UrbanDigs chart looks like this.
You can see the last five months of deal volume circled. Sales have been soaring. So, where do we go from here after booking 1,607 listings last month?
Manhattan real estate may be peaking
If history is a guide, time will prove unsustainable for this level of contract activity. For now, sellers have recovered wonderfully. They can trade property without much of a COVID discount, something they could not say six months ago.
But a regression to the mean is inevitable, and agents should advise buyers and sellers accordingly. When the dust settles and things return to more normal levels, we will be able to look forward to a more sustainable level of real-time deal volume for the Manhattan markets.
In the meantime, future price action looks flat to negative in the short term with solid upside potential as we get into the second half of the year.
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Photo above courtesy of 300 West.