News: Deals for new condos cooled in January (The Real Deal)

After capping off 2021 with stratospheric sales, New York’s new development contract activity came back to earth in January.

Homebuyers signed contracts for homes in Manhattan, Brooklyn and Queens new developments asking a cumulative $760 million, down 28 percent from last month, according to Marketproof. Median price per square foot and unit price fell 8 percent and 12 percent month-over-month, respectively, and the number of contracts signed fell 13 percent from December to 313.

The number of deals was about the same as in January 2020, but prices are way above their pre-pandemic levels. Median price per square foot is up 16 percent from two years ago and median unit price is up 31 percent. Home prices surged across the country last year.

“I don’t think that anyone is expecting that record level of 2021 activity to continue forever,” Marketproof CEO Kael Goodman, who authored the report. “It’s not sustainable, and I think that’s what the January data is saying.”

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Rendering of Olympia Dumbo courtesy of March