The residential real estate sector of Manhattan has reportedly registered sales of USD 7.3 billion in the first quarter which marks the strongest-ever start to the year as the market witnesses surging growth.
Credible reports suggest that there were nearly 3,585 sales in Q1, which is the highest number ever for first-quarter sales. This is up to 46% from last year’s first quarter. Overall sales volume increased by 60% as decreasing inventory also resulted in a continued surge in prices.
The average price of an apartment in Manhattan increased by 19% in comparison to last year’s USD 2,042,113.
The growth came despite surging interest rates, issues about falling stocks, and a potential recession, which tend to have an impact on the region’s real estate market given the dependence of the city on the financial sector.
It should be noted that the rising sales are not driven by the push for a return to offices. According to credible sources, only around 36% of workers in New York have returned to the office.
Jonathan Miller, the Chief Executive Officer of Miller Samuel, the research and appraisal firm, stated that the general notion about Manhattan being the residential hub of office-goers is being challenged. Many people who work remotely want to be in the borough owing to its restaurants, cultural offerings, and Broadway.
Growing interest rates have little to no impact on wealthy buyers, who account for a majority share in the Manhattan market. Over 47% of all purchases in real estate in this quarter were all-cash deals, up from 39% during the pandemic, and closer to the historical norm.
Supply was the other reason for Manhattan’s strength at this year’s start. While the rest of the nation tackles a dearth of homes for sale, Manhattan still has sufficient inventory although it is declining.
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