Manhattan Real Estate Market Report: 1Q 2022

“2021 was a historic year in the Manhattan market, and the fervent activity that fueled last year’s sales has continued into 2022. This was the best first quarter for closed sales in 15 years, and signed contracts—demand’s best indicator—improved versus a record-breaking 2021, marking the strongest start to any year on record.

With robust sales and improving prices, barring any unexpected shocks, this stellar first quarter should have everyone feeling very optimistic about another momentous year ahead.”

-Pamela Liebman, Corcoran President & CEO

Despite rising interest rates, global political uncertainty and lingering COVID concerns, the Manhattan market isn’t showing any signs of slowing down.

  • In a stellar first quarter, closed sales rose 36% annually to their highest first quarter level in 15 years. Closings have now risen YOY for five consecutive quarters.
  • Sales volume, because of higher prices, climbed an even greater 60% YOY increase to $7.37 billion, the most for any first quarter in 14 years.
  • Even more impressively, signed contracts improved versus a record-breaking 2021, and at nearly 4,000 deals was the strongest start to any year on record.
  • These first quarter results suggest 2022 has the potential to be another monumental year for Manhattan sales.

Due to robust sales, listed inventory continues to decline, causing very tight supply in high-demand neighborhoods and price categories.

  • As sellers capitalize on strong market conditions, almost 5,000 listings hit the market in 1Q 2022, the most of any first quarter on record.
  • For the first time in five years, inventory dipped under 6,000 units. As of mid-March, 5,961 units were actively listed in Manhattan, down 25% year-over-year.
  • As inventory dips, so do days on market.
    • Down 9% versus last quarter, and down a significant 30% YOY, at an average of 107 days, this is the lowest first quarter reading since 2016.

Manhattan prices improved YOY thanks to robust demand, falling inventory, a higher percentage of 2 and 3+ bedroom sales and a strong luxury market.

  • In the first quarter, market-wide price statistics increased sharply versus last year.
    • Both median price and median price per square foot rose YOY, with median price jumping for the seventh consecutive quarter to a near-record $1.195M
    • Median price per square foot surpassed 2Q19’s record with a new high of $1,445
    • Average price per square foot grew annually for the second consecutive quarter to $1,816, returning to 2017-2018 levels.
  • 1Q 2022 was the first time since 3Q 2016 that price figures climbed across the board versus a year ago for both the Manhattan market overall and for each product type.
  • As competitive buyers force prices higher, the 1Q22 market share of closings under $1,200 per square feet was only 20%, the lowest percentage on record.

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