Elegran Insights
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Elegran Insights

Elegran Manhattan Market Update: December 2021

Photo by Mor Shani on Unsplash
  • Manhattan supply decreased across all price ranges, neighborhoods, and bedroom counts over the last month and year, with the exception of listings priced $10M and higher, which increased by 3% compared to last month.
  • Inventory decreased double digits across all price points below $5M and inventory priced $5–10M decreased only 2% in the last month.
  • Inventory in Downtown Manhattan decreased 15%, and inventory on the Upper East Side decreased 8% in the last month.
  • Buyers are active across a wide range of market segments indicated by increasing contract activity over the last month in most price ranges, neighborhoods and sizes.
  • Apartments in the $1–2M price range had the greatest amount of contracts signed [351], followed by apartments in the $600K-1M price range [308].
  • Contract volume in Midtown increased the most by 13%, and the number of listings signed [408] surpassed all of the other neighborhoods.
  • In terms of bedroom count, more contracts were signed for 1-bedroom apartments than any other size.
  • By neighborhood, the median sales price for condos increased on the Upper East Side, the Upper West Side, and Downtown markets, while decreasing in Upper Manhattan and Midtown. The Downtown market remains the most expensive.
  • The median sales price for co-ops increased across all neighborhoods except for Downtown Manhattan. Co-ops on the Upper West side are the most expensive.
  • Across bedroom count, the median sales price for condos decreased within all sizes except for studios, and for co-ops, the median sales price remained unchanged for studios while increasing in 1-bedroom apartments and decreased in 2–3+ bedroom units.
  • Median PPSF increased the most in the $5–10M price range, and decreased the most in the $10M and up price point.
  • By neighborhood, the median price per square foot increased across all areas except for in Midtown Manhattan [-7%].
  • Over the last year, all bedroom sizes saw an increase in Median PPSF, but compared to last month, 1–2 bedroom apartments decreased by 3%, whereas studios and 3+ bedrooms increased by 2% and 3% respectively.
  • The median listing discount decreased across all apartment types both month over month and year over year.
  • The median listing discount decreased across all price points except for the $600k-1M price range, which increased by 4%.
  • Across all neighborhoods, the median listing discount decreased in all areas, except for Downtown Manhattan which increased 3%.
  • The median discount is highest for properties in Midtown [4.7%] and lowest for properties in the Upper West Side [2.3%]
  • By bedroom size, the median listing discount decreased across the board compared to last month and year.
  • Buyers awaiting more inventory may be disappointed as weekly new inventory continues to trend lower and is compounded by a steady increase in contract activity throughout November.
  • Contract activity continues to set decade records in November indicating the demand for inventory and the competition among buyers.
  • November’s increase of pending sales at a faster rate than supply has raised the Market Pulse is closing the window of opportunity for buyers.
  • Median listing discounts continue to decrease and the percentage of listings that sell over the asking price is increasing, indicative of continued competition for desirable and accurately-priced properties.
  • Mortgage interest rates are beginning to increase once again, and are projected to increase throughout 2022, potentially spurring buyers to act sooner than later.
  • While sellers often traditionally wait until late winter or early spring to list their home, buyers are active and clamoring for new inventory, and sellers can stand out by listing sooner.
  • The Market Pulse is rising, indicating a strengthening seller’s market.
  • Total supply has dipped back down below 5,000 and to a level last seen during this time of year in 2017.
  • Sellers on the market who are not receiving attention or offers should reevaluate their asking price heading into the holiday season, as bidding wars are increasingly common and the median days on market is declining.
  • Supply continues to decline as tenants are often choosing to renew their leases rather than move.
  • Tenants facing a renewal may experience rising renewal rates and landlords unwilling to negotiate or offer concessions.
  • There are nearly 10,000 fewer units available for rent now, compared to this time last year as currently supply is only 23% of the supply on the market 1-year ago.
  • Competition is fierce amongst tenants, with apartments often receiving multiple offers and occasionally going to bidding wars.
  • With attention on inflation, investors can look to hard assets as a hedge against inflation.
  • Rising rental rates are increasing cap rates and creating incentive for investors to explore investment opportunities in Manhattan.
  • Today presents an opportunity to purchase Manhattan real estate on an upswing and at prices still below their recent highs.



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