This quarter, closings and signed contracts soared, bringing inventory down from last quarter and helping to stabilize pricing.

“2021’s second quarter was white-hot from start to finish. Manhattan had the best spring season for closed sales in six years and the strongest second quarter for contract activity since 2007. As many buyers remain focused on the desire for more space, the high-end of the market is also soaring, pushing the sales of larger homes to new heights. The market share for two- and three-plus bedrooms has risen to record highs of 34% and 20%, respectively. Due to increased sales in this category, pricing statistics climbed versus last quarter, giving the $5M+ market a nice boost.  A year-and-a-half after the pandemic began, it’s safe to say that New York City has its mojo back.”

–  Pamela Liebman, President & CEO, The Corcoran Group

The Manhattan sales market had its best spring season in six years, with closings soaring for the second consecutive quarter due to robust levels of contract activity.

  • Sales activity skyrocketed in 2Q 2021—closings increased on a quarterly and annual basis for the second consecutive quarter, up 42% versus last quarter and up 126% year-over-year to 3,828 sales.
  • This was the best second quarter for closings since 2015.

While pricing rose across the board, buyers focused on larger spaces pushed the high-end of the market to quickly rebound, driving the market share of large residences and condos to record highs.

  • Sales volume totaled $7.72B, one and a half times higher than 2Q 2020 and a four-year high for the second quarter due to sales shifting towards larger, pricier residences.
  • Increasing 19% YOY—and 8% quarter-over-quarter—median price increased to $1.190M as the composition of sales shifted to larger residences and condominiums while the luxury market and sales over $5M grew significantly.
  • Median price rose 19% YOY to $1.190M and average price rose 15% annually to $2.018M.

But even with incredibly strong sales, inventory remains stubbornly high.

  • As of mid-June, 7,939 units were actively listed in Manhattan, 31% more than last year, although inventory then was artificially low due to pandemic-related showing restrictions.
  • A positive sign for sellers was that inventory did moderate, albeit slightly, versus 1Q 2021—the first time since 2013 that inventory fell between the first and second quarter of the year.
  • While small, this decline was surprising given that over 6,000 new listings hit the market this spring, far more than the typical 4,500 that come to market between April and June.
  • As was the case in 1Q, amid robust contract activity for larger residences, listed inventory grew more at the low-end than high-end this quarter. Active listings under $2M rose 34% annually.

Read the full report.

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