Sat. Jan 22nd, 2022

Manhattan condominiums rose 65% in November, led by the most expensive homes

More contracts signed in the city for more expensive housing (iStock)

Contract signings continued to surpass new listings in Manhattan and Brooklyn in November, but declined in the suburbs, according to the latest Douglas Elliman report prepared by Miller Samuel.

The report examines single- to three-family homes as well as condominiums and condominiums in Manhattan, Brooklyn, Long Island, Westchester County and Fairfield County.

Most property types in Manhattan and Brooklyn saw an increase in contract activity compared to last year, when the market began to rise after pandemic-related setbacks.

“We have just come out of the distortion period a year ago, but we are seeing an unusually high level of activity in sales,” said Jonathan Miller, who wrote the report.

Increases varied by price point and property type: Co-ops requesting $ 1 million to $ 2 million in Manhattan saw 3.5 percent fewer contracts signed than last year, while condominiums in the same price range rose 22.5 percent.

Homes demanding $ 10 million to $ 20 million, however, saw contract activity increase 150 percent year-on-year for cooperatives and as much as 633 percent for condominiums.

Brooklyn saw an increase in contract activity for all property types except cooperatives. While condominium contract activity increased by 38.2 percent compared to last year, cooperatives experienced a 4.7 percent decline in contract activity as demand was stifled by a 10.6 percent decline in supply.

The lack of cooperatives in Brooklyn tells a story similar to the suburbs, where a drop in signed contracts does not mean that demand fell.

On Long Island, excluding the Hamptons and North Fork, contracts for single-family homes fell by 12.8 percent, but inventories fell 26 percent. Contracts for condominiums rose 11.9 percent, despite listings falling 19 percent.

“The inventory continues to collapse, which is why we expect continued price growth into the new year,” Miller said.

Niche markets like the Hamptons behave like Long Island as a whole: New listings can not keep up with demand, causing the number of contracts signed to fall. In North Fork, inventory fell twice as fast as signed contracts did.

Westchester County, New York, was similar, with new listings falling faster than contracts.

In Fairfield County, Connecticut, new ads fell 32.9 percent year-on-year for single-family homes and 28.8 percent for condominiums. Yet contract activity still boomed, rising 54.9 percent for single-family homes and 90.2 percent for condominiums.

In the volatile market in Greenwich, sales fell sharply due to declining supply. Although activity fell by 43.3 percent for single-family homes, it was still up 75.6 percent from two years ago before the pandemic.

Not even rising interest rates could spare the market from rising prices driven by historically low supply, Miller said. Since the majority of the listings are resale or existing products, there has not been enough time for the market to rebuild.

“People are just not ready to put their homes up for sale,” Miller said.

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