Manhattan Defies National Trends with Robust Real Estate Market in 2022
It was a busy year for real estate in Manhattan in 2022, with more apartments trading hands than in all but three years since 2012. This trend seems to be returning to pre-pandemic levels, dismissing any concerns about a declining market and pointing to a continued rebalancing after two years of record activity.
It was a busy year for real estate in Manhattan in 2022, with more apartments trading hands than in all but three years since 2012. This trend seems to be returning to pre-pandemic levels, dismissing any concerns about a declining market and pointing to a continued rebalancing after two years of record activity.
Overall, sales volume dipped 22.5% year-over-year in Q4, and 17.8% quarter-over-quarter as high levels of uncertainty fueled by high inflation and a surge in mortgage rates persuaded some buyers and sellers to stay on the sidelines. Despite this dip, the average apartment in Manhattan still sold for a hefty $2,000,542 in Q4, a 8.2% increase from the previous year. This high price point is still attractive to high net worth buyers, who drove a 16.9% increase in transaction volume for apartments priced between $10 million and $20 million. These buyers are still willing to pay a premium to own property in the world’s capital and see the value in doing so, even in today’s environment.
However, contract activity decreased 27.4% year-over-year, indicating that the market is still adjusting to new conditions. This presents an opportunity for co-op buildings to revisit their approval, refinancing, and renovation policies in order to remain competitive. A changing market also provides an opportunity for buyers to take advantage of less competition and potentially higher long-term appreciation by purchasing now, rather than keeping their money in the bank.
Despite some uncertainty in the market, the energy in Manhattan remains strong, with people still eager to live in the city. The streets are bustling and there is a unique energy that can only be found in New York City. As buyers and sellers continue to navigate the changing market, it is expected that deals will continue to happen sustainably. Manhattan’s appeal as a sought-after location is undeniable, with its unique culture and vibrancy continuing to draw people in.
