NYC MARKET REPORT Q2 2021 - FEATURED ON FORBES - Warburg Realty
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NYC
MARKET
REPORT
Q2 2021
FEATURED ON FORBES
BY FREDERICK WARBURG PETERS, CEO
WARBURG REALTY
UPPER EAST SIDE | 654 MADISON AVENUE, NY, NY 10065 | 212.439.4500
TRIBECA | 124 HUDSON STREET, NY, NY 10013 | 212.380.2400
WWW.WARBURGREALTY.COM
MONTHLY DAYS ON MARKET BY CONTRACT SIGNED DATE
ALL MANHATTAN PRICES AND PROPERTY TYPES
140 135
130
121
120
100
DAYS ON MARKET
80
77
60
63 64
40
20
0
JAN-21 FEB-21 MAR-21 APR-21 MAY-21 JUN-21
CONTRACT SIGNED DATE SOURCE: URBANDIGS
The arrival of July 1 marks the end of one of the most remarkable quarters in New York real
estate history. Every week since February has seen more than 30 contracts signed at $4
million and over, the most extraordinary run since before the 2008 recession. And it’s not
just, or even primarily, these larger units which are enjoying such popularity. There are
multiple offers made on almost every well-priced home from $500,000 to $5 million in both
Manhattan and Brooklyn. Days on market, historically averaging around 90 to 100, now
stands closer to 60. Many newly listed properties don’t even last a week. All these statistics
paint the picture of a local market starving for supply and vibrating with demand.
Apparently, the naysayers writing that New York was dead prognosticated prematurely;
Jerry Seinfeld was right! In fact, the city displays a history of bouncing back from disaster:
the real estate market took off in January of 2002, less than 4 months after 9/11, and again
in late 2009/early 2010, considerably in advance of when the rest of the country began to
recover from the 2008 recession. This time, as cities nationwide found themselves as
epicenters of the first wave of the COVID-19 outbreak, many New Yorkers left town,
ostensibly never to return. Of course, now everything looks different. After a school year in
the Hamptons, or Westchester, or Fairfield County, many people are finding that they miss
their former lives. Unfortunately for those who gave up their city homes, finding
replacements has proven difficult and is only getting harder. Total supply of Manhattan
properties for sale, which peaked in October 2020 just below 9,600 units, stood last week at
6,675. Furthermore, as travel opens up, the national and international demand for homes in
New York has kicked in again, putting even more pressure on the downward slope in supply.
WARBURG REALTY MARKET REPORT Q2 2021 01In New York, the upward price
creep has begun, especially for
units priced under $5 million and
the hottest new condominiums.
It has been one of the hottest
springs on record (in every sense)
and the real estate community
anticipates a busy summer ahead.
As always, the market does not spread its gifts with equal
generosity. Especially in the more expensive price
categories, condo sales FAR outstrip co-op sales in both
quantity and price per square foot. The past two weeks’
Olshan reports, which track Manhattan contracts over $4
million, showed deals on 49 condos and only 17 co-ops.
While the area below 14th Street has been particularly hot
for condo sales, on both the Upper West and Upper East
Sides, newly constructed super-luxury buildings such as
200 Amsterdam Avenue and 151 East 78th Street see
inventory flying off the shelves.
Meanwhile, co-ops at $10 million and above languish,
often for months, since the new generation of ultra-
wealthy buyers feels ambivalent about the strictures
placed around co-op ownership. In addition, the newly
built apartments are move-in ready, requiring only
decoration. Their pre-war counterparts lining Central Park
West, Park, Fifth, and West End Avenues, however, usually
need some work, and often a soup-to-nuts renovation.
WARBURG REALTY MARKET REPORT Q2 2021 02CONDO VS. CO-OP QUARTERLY SALES VOLUME
ALL MANHATTAN PROPERTY TYPES +$1M
CONDOS CO-OPS
640
Q2 2021
1,047
612
Q1 2021
872
QUARTER
395
752
Q4 2020
310
523
Q3 2020
0 100 200 300 400 500 600 700 800 900 1,000 1,100
NUMBER OF SALES
SOURCE: URBANDIGS
While today’s hot market may seem like a bubble, it’s not. Several factors have contributed
to the spike in home purchases coming out of the pandemic. First, people throughout the
city think differently now about their lives. They need a home office, and they may want a
garden or a terrace. They anticipate spending less time in the office, so space at home, both
inside and out, has grown in importance. Second, as the city comes back to life, demand
from just local but also national and international buyers has accelerated dramatically.
Finally, more and more older people are aging in place, removing an important source of
inventory from the marketplace. Taken together, that means fewer properties are on the
market at a time when demand is spiking. The supply/demand equation now tilts
increasingly sharply towards demand.
How long will this last? Almost certainly through 2021. In New York, the upward price creep
has begun, especially for units priced under $5 million and the hottest new condominiums.
It has been one of the hottest springs on record (in every sense) and the real estate
community anticipates a busy summer ahead.
WARBURG REALTY MARKET REPORT Q2 2021 03PRESS INQUIRIES: PR@WARBURGREALTY.COM
UPPER EAST SIDE | 654 MADISON AVENUE, NY, NY 10065 | 212.439.4500
TRIBECA | 124 HUDSON STREET, NY, NY 10013 | 212.380.2400
WWW.WARBURGREALTY.COM
ALL INFORMATION IN THIS DOCUMENT IS FROM SOURCES DEEMED RELIABLE BUT IS SUBJECT TO ERRORS, OMISSIONS, OR CHANGES WITHOUT PRIOR NOTICE. NO REPRESENTATION IS MADE AS TO THE ACCURACY OF ANY
INFORMATION, INCLUDING, WITHOUT LIMITATION, ANY DESCRIPTION, AMENITIES, FLOOR PLANS, MEASUREMENTS OR SQUARE FOOTAGE. ALL INFORMATION SHOULD BE INDEPENDENTLY CONFIRMED AND ANY RELIANCE IS
SOLELY AT BUYER'S OWN RISK. REAL ESTATE BROKERS AND SALESPEOPLE AFFILIATED WITH WARBURG REALTY ARE INDEPENDENT CONTRACTORS AND ARE NOT EMPLOYEES OF WARBURG REALTY. EQUAL HOUSING OPPORTUNITY.You can also read
