A view of 432 Park Avenue October 15, 2104 the day after it earned the excellence of being the nation’s tallest residential skyscraper.
Timothy A. Clary | AFP | Getty Images
The variety of real estate contracts signed for Manhattan residences plunged 84% in May in contrast with final 12 months, as shutdowns to stop the unfold of Covid-19 and protests following the dying of George Floyd successfully paralyzed the market.
There have been a complete of 160 contracts signed in May, in contrast with 992 in May of 2019, in keeping with UrbanDigs. The variety of new listings has additionally plummeted, down 71% to 574, as sellers determine to maintain their properties off the market till town begins to reopen.
The ache in Manhattan real estate will likely be felt most on the high — the place an oversupply of dear new apartment towers and penthouses have been already weighing on costs. For residences priced over $four million, there have been solely 16 contracts signed in May for a complete of $100 million — an almost 90% decline from final May when 111 contracts have been signed totaling $1.1 billion, in keeping with the Olshan Report.
One of the costliest deals in May, a contract for the sale of a co-op on Park Avenue that had been listed for $6.95 million, was bought by an proprietor who determined to transfer together with his household to Scarsdale, New York in the wake of the coroanvirus pandemic, in keeping with the Olshan Report.
While knowledge on New York City residents shifting to the suburbs remains to be largely anecdotal, there are some early indicators of city flight to surrounding suburbs. UrbanDigs did an evaluation “relative demand,” which it defines as new gross sales contracts divided by new listings.
The evaluation discovered that whereas demand was down sharply in Manhattan, demand elevated in Westchester County in New York, Greenwich, Connecticut, and in Bergen and Monmouth counties in New Jersey.
“In the near term, continued slack demand for Manhattan could create an oversupply situation, implying lower prices ahead, and increased suburban demand could create a supply crunch, pushing up prices,” in keeping with the UrbanDigs report. “In the meantime, it remains to be seen if the easing of stay-at-home restrictions in Manhattan will unlock pent-up demand, but with the move to the suburbs already in place and further entrenched by the COVID-19 pandemic, any pickup in Manhattan demand seems unlikely to reverse the trend.”
Manhattan real estate brokers say they continue to be optimistic about deals as soon as town reopens and unleashes pent-up demand amongst sellers and deal-hungry patrons. Brokers have been unable to indicate residences or maintain open homes for patrons since March. While no date has been set for real estate to reopen as a part of New York’s Phase 2, they’re anticipating a reopening round June 22.
Until there are extra deals, brokers say they will not know the place costs in Manhattan will land or how a lot they may fall over time.
“I have a lot of people waiting to sell and a lot of people waiting to buy,” stated Lauren Muss, a dealer with Douglas Elliman. “It’s a question of when we can do business again.”