Manhattan residential actual property gross sales hit file $7.3 billion in first quarter

Luxurious high-rise residences are seen throughout Central Park South close to Columbus Circle within the Manhattan borough of New York.

Robert Nickelsberg | Getty Pictures

Manhattan residential actual property gross sales topped $7 billion within the first quarter, marking the strongest-ever begin to a 12 months because the market exhibits no indicators of slowing, in response to new gross sales information.

There have been 3,585 gross sales within the first quarter, the very best quantity ever for a primary quarter, in response to a report from Miller Samuel and Douglas Elliman. That is up 46% from the primary quarter of 2021. Complete gross sales quantity surged by 60% to over $7.3 billion, as falling stock additionally led to continued progress in costs.

The typical worth of a Manhattan condominium jumped 19% over the earlier 12 months’s interval, to $2,042,113.

The energy got here regardless of rising rates of interest, considerations a couple of doable recession and falling shares, which are likely to have an outsize impression on the Manhattan real-estate market given the town’s dependence on the monetary business.

It does not seem like a push for a return to the office is driving the rise, both. Solely about 36% of New York staff have returned to the workplace, in response to information from Kastle Methods.

Jonathan Miller, CEO of Miller Samuel, the appraisal and analysis firm, stated the belief that individuals reside in Manhattan due to their jobs is now being challenged.

“You will have lots of people who’re working remotely, however need to be in Manhattan,” he stated. “They’re drawn to the cultural choices, the eating places, Broadway. Distant work does not simply imply the suburbs. There might be as many individuals working remotely on the Higher East Facet of Manhattan as there are in Westchester.”

Rising rates of interest even have much less impression on rich consumers who dominate the Manhattan market. As charges go up, they merely pay extra cash. Greater than 47% of all real-estate purchases within the quarter had been all-cash, up from the pandemic low of 39%, and nearer to the historic norm.

One more reason for Manhattan’s energy at first of 2022 was provide. Whereas the remainder of the nation grapples with a scarcity of properties on the market, Manhattan nonetheless has ample stock, although it’s declining. Virtually 5,000 listings hit the market within the quarter, essentially the most of any first quarterer on file, in response to Corcoran. But for the primary time in 5 years, stock dipped below 6,000 items.

“With strong gross sales and bettering costs, barring any sudden shocks, this stellar first quarter ought to have everybody feeling very optimistic about one other momentous 12 months forward,” stated Pamela Liebman, Corcoran’s president & CEO.

The query is how a lot larger Manhattan costs can go earlier than consumers begin backing down from offers. The median worth of a Manhattan condominium hit an all-time file of $1,190,000 within the first quarter. The median worth for brand spanking new improvement topped $2.3 million.

The largest worth positive aspects are on the high. Costs for residences with 4 or extra bedrooms jumped 31% over final 12 months, to $6.5 million. As consumers droves costs larger, solely 20% of residences bought went for lower than $1,200 a square-foot, the bottom share on file, in response to Corcoran.

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