It’s time to take a look at the NYC real estate market update for Q1 2022. To view the update for the previous quarter, click here.
To view the full report, visit the links below:
The recovery for the Manhattan sales market seems to be on very stable footing, as closings continued to improve in the first quarter of the year. Sales were up 36% year over year. And it was the first time in 15 years that sales have risen year over year for five consecutive quarters.
The median price stood at $1,195,000, an improvement of 9% versus the previous year. And contracts signed were up 9%, which is impressive considering that Q1 2021 was the strongest start to any year on record!
While the average price per square foot rose 19% year over year, inventory slid by 25% and days on market tumbled by 30%, indicating strong buyer interest.
Although not quite as “eye popping,” Brooklyn had a strong start to the year as well. Closed sales were up 7% year over year and signed contracts were just about even with Q1 2021.
Inventory continued to contract, declining 27% versus Q1 2021, and days on market fell by 15%, indicating that buyer competition was stiff during the quarter.
Surprisingly, the median price for the borough was slightly down year over year. It stood at $775,000, 2% lower than Q1 2021. However, this isn’t a “bad” sign for sellers. Instead, it likely reflects more resales, fewer new development sales and a lower volume of sales over $2 million.
Despite enduring the biggest wave of infections yet during the pandemic, Omicron didn’t seem to put a dent in the market’s resurgence. And neither did rising interest rates.
However, given that interest rates are expected to continue to rise throughout the year, it could have a cooling effect on the market.
But buyers shouldn’t get their hopes up too much. Inventory in both Manhattan and Brooklyn is still constrained. So that’s going to offset any decline in buyer interest (if any). Buyers should expect continued intense competition for the most desirable listings.
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