NYC Real Estate Market Update Q1 2021 – Manhattan & Brooklyn
It’s time to take a look at the latest NYC real estate market update for Q1 2021.
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In Manhattan, sellers adjusted their prices downward and were more willing to accept discounts. As a result, the median price for Q1 2021 saw both year over year and quarter over quarter declines. They were down 3% year over year and 4% versus the previous quarter, respectively.
Inventory was elevated year over year. But it actually declined significantly versus the previous quarter. This was due to really robust contract activity. Contracts signed were up a striking 58% year over year and 31% versus Q4 2020.
And for the first time in more than a year, closings were actually up year over year AND quarter over quarter. Closed sales were up 7% versus Q1 2020 and 23% versus Q4 2020.
Meanwhile, there’s little doubt that the Brooklyn market is hot once again.
The median price saw an increase of 20% year over year to $797,000 – the highest in the past 12 years. But this doesn’t mean that prices across the borough jumped. Instead, the increase was fueled by more demand for larger spaces, in particular 3+ bedrooms.
Closed sales and contracts signed also saw big jumps year over year. Closed sales were up 37% versus Q1 2020 – the highest level seen since 2007. And contracts signed were up 34% year over year, the highest level since Q2 2015.
But despite the foregoing news, Brooklyn buyers got a bit of a welcome relief when it came to inventory. Listings were up 65% compared to Q1 2020.
I think it’s official at this point. The NYC real estate market is BACK.
We’ve seen several months in a row of increased contract signings, and inventory is finally starting to come down from its high points. In fact, Brooklyn inventory is looking quite similar to what it was back in 2019.
This doesn’t mean it’s truly a “seller’s market,” however. At least, not yet.
Both buyers and sellers have some advantages and disadvantages. Neither side should overestimate their negotiating power.
Manhattan is by far the best place for deals, especially on the very high end and at entry level (i.e. studios and 1 bedrooms). So if you’re looking to upgrade your space in a big way or finally get your foot on the property ladder, now is certainly the time!
And while interest rates have gone up, they’re still at historically low levels, making it an all around good time to buy if you can find the right place.
Thinking about buying but not sure if you’re ready? Then sign up for my First Time Buyer Bootcamp to help you figure it out! Join here!