NYC Real Estate: 2021 Year Summary
Following a wild 2020 which saw the NYC real estate market come to a screeching halt, 2021 was a record-shattering, electrifying, monumental marketplace. Below are some of the key takeaways from Brooklyn and Manhattan:
BROOKLYN
· Fourth Quarter 2021 was the icing on the cake of one of the most remarkable years in Brooklyn real estate. An incredible 8,600 apartments closed in 2021, a giant 73% increase over 2020 and the highest figure on record. Closings in 4Q rose 15% annually to about 1,920 sales, the fifth consecutive quarter of double- or triple-digit gains.
· 2021 toppled sales volume records with a staggering $8.1B, which crushes 2017’s record of $5.5B. With an 80% year-over-year increase, new developments are driving performance and capturing nearly one-third of the market.
· The region encompassing Kensington, Windsor Terrace, Ditmas Park, Flatbush & Prospect Park South saw sales increase a monumental 55%, the largest year-over-year gain in the borough.
· Active buyers on the hunt for larger homes in prime neighborhoods helped sustain near-record pricing statistics. Average price continued to surpass $1M and increased 17% year-over-year.
· Contracts signed surpass all previous years. Condo and co-ops both saw the number of signed contracts surpass all other years for which data is available.
· Median price reached an all-time high. Median sale price for all types grew by double-digits annually and also reached all-time highs.
MANHATTAN
· 2021 was perhaps the best year ever for the Manhattan market. Over 16,600 contracts were signed, the most inked in a single calendar year. 2021 also had over 15,600 closings – the most since 2008 – with resale condos and luxury sales over $5M surpassing the previous high reached in 2013.
· Sales volume had a historic year and Q4 2021 was one of the best on record. Sales volume totaled $30 billion in 2021, 6% more than 2007’s previous all-time high. 4Q sales volume totaled over $8 billion. Signed contracts grew 47% annually to 4,200 deals -- by far the best fall season ever.
· Manhattan fourth quarter inventory fell to its lowest level since 2016 and the sharpest ever YOY decline. As of mid-December, nearly 6,300 units were actively listed for sale in Manhattan, down 37% annually. This is despite an all-time high of 4,100 new listings coming to market during 4Q 2021.
· After a five-year decline, Manhattan prices finally appear to be improving due to historic demand, lower inventory, cooling negotiability and a record-setting luxury market.
· The best year ever for contracts signed. Over 16,500 contracts were signed in 2021, 5% more than the previous peak in 2007.
· Median price has never been higher. Median price rose to about $1.8M in 2021, a record driven by a greater number and market share of two and three+ bedroom sales.