The Manhattan Market Report for Q1 2022 was published this past week. It revealed some interesting numbers. Watch my video for an inside perspective on the market.
Closed sales during the first quarter totaled 3,664. Q1 was the best first quarter for closed sales in 15 years. Closed sales indicate accepted offers from 3-6 months ago. To find out if the market is still strong, we look at signed contracts and during the first quarter, signed contracts totaled 3,978 so the momentum continued through the beginning of this year.
The report also shows that the average price per square foot jumped 25% to reach $1,816 largely due to the strength of the luxury market. While the median price was up only 9%. The two bedroom apartments showed the largest jump in prices with two bedroom condos increasing 17% and two bedroom coops increasing 8%. Overall, coops continue to offer value and buyers pay a premium for the flexibility of usage a condo provides. So if you are not planning on renting out your property, you will find value in a coop. In terms of neighborhood appreciation, the Upper West Side and the Upper East Side witnessed the greatest price increases of 18% for the West Side and 17% for the East Side.
Where we go from here is uncertain given global political and economic disruptions. The inventory levels in Manhattan at the end of the quarter were down 25% from last year at 5,961 listings. As of today, they have jumped to 8,180 which puts the market in equilibrium. Many sellers who would have waited for warmer weather came to market early as mortgage rates jumped. As of yesterday mortgage rates had topped 5%. Mortgage rates could increase further if the Fed continues to raise rates as planned. If there is a silver lining, uncertainty in the global financial markets are driving investors back into the market as they seek a safe haven.
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Categories: Market Report