By Colin O'Leary
January 4th, 2022
The Manhattan real estate market just had its best year ever in 2021. The news comes as a surprise to many as the city continues to deal with major issues such as the covid pandemic, population loss, and rising crime. The residential market rebounded quicker than most expected in 2021, with a record $30 billion in sales, according to a report from CNBC. Over 16,000 contracts were signed to purchase real estate in Manhattan in 2021, also a record.
The comeback has been driven largely by the luxury market. Apartments priced above $10 million are selling the fastest. Ultra-wealthy buyers are snapping up penthouses and large full-floor units in new buildings. Many purchasers are snapping up second homes as pieds-a-terre or investment property. A large percentage of the sales recorded were all-cash deals. New development inventory is finally shrinking in the borough after years of surplus inventory from overdevelopment. Prices are returning to pre-pandemic levels.
The market is not showing any signs of slowing down at the moment. An impressive $6.7 billion in sales were recorded in the final quarter of 2021. The average price for an apartment in Manhattan is now $1.95 million, according to the report. The median price of a home in Manhattan jumped 11% year-over-year in the fourth quarter. With rising inflation, supply chain issues, and likely interest rate hikes on the horizon, it will be interesting to see how the residential market plays out in 2022.