By Colin R. O'Leary
October 25th, 2021
It's been almost two years since the start of the pandemic. Nationally, the real estate market has been booming. Locally, it's been a different story for the real estate market. NYC was one of the hardest-hit real estate markets in the country during the height of the pandemic. The retail & office market was hammered. Vacancies were skyrocketing overnight. Businesses that were around for generations were forced to shutter their doors. Things were looking bleak.
The residential market took a hit too, though not nearly as bad as the other sectors. The Manhattan residential market was affected the most. Prices dropped fast as city dwellers headed for the suburbs and rural areas. The market held up better in the outer boroughs during the pandemic. Many people flocked to places such as Brooklyn, Queens, and Staten Island in search of open spaces.
The market is improving now. There are signs the city is starting to return to normal. People still want to live in cities. Manhattan is not dead. The city is starting to make a comeback, however slowly. Market activity is picking up across the five boroughs. The data backs up this claim. Here's a quick look at what's happening in Manhattan and Brooklyn compared to this time last year.
Market conditions in Manhattan greatly favored buyers since the beginning of the pandemic. Things are starting to change now though. There are still a lot of great deals, however, it's beginning to shift towards more of a seller's market. As of October 2021, the supply of active residential listings is hovering around 6,500. That's a decrease of 32% compared to the same time last year. Interest rates are still low, but there are fewer opportunities for buyers in today's market compared to a year ago.
There's a lot more activity happening right now compared to this time last year. For example, the number of pending home sales in Manhattan is currently hovering around 4,500. That's an astonishing 133% increase year-over-year. A lot more listings are going into contract compared to last year. The median sales price in Manhattan is currently $1,057,000, a decrease of nearly 5% year-over-year. Sellers are becoming more realistic with today's marketplace and are ready to make deals happen. Manhattan is surely on the rebound.
The market is hotter in Brooklyn, where prices were not affected much by the pandemic. The market is tighter in Brooklyn, where where buyers face a combination of less inventory and more competition. It's more of a seller's market in Brooklyn compared to Manhattan. The number of homes available for purchase in Brooklyn is currently hovering around 3,300. That's a decrease of just under 22% compared to a year ago. With less inventory and more competition, it's becoming more difficult for buyers to find good deals in Brooklyn, where the market continues to favor sellers.
Similar to Manhattan, there's been an uptick of homes going into contract in Brooklyn. The number of pending home sales in Kings County is up an impressive 50% year-over-year. The median sales price in Brooklyn is marching towards the $1 million mark, which is impressive considering the median sales price was around $500,000 back in 2010. The median sales price in Brooklyn is currently $945,000, a sizeable increase of 10% year-over-year. That's a telling sign of a strong market. Brooklyn is still a place where people want to be.
All data shared was provided by real estate data company UrbanDigs