Third Quarter 2021 Residential Market Report Manhattan

BHSID 21290566 Man

hatt

an

Third Quarter 2021Residential Market Report

BHS 2

BHSID 21320988

Message from Bess Freedman CEO of

The Manhattan apartment market stayed hot in the third quarter, with closings at their highest level

in eight years. The average apartment price was 11% lower than a year ago, but that is due to a rash

of super luxury closings at 220 Central Park South inflating the third quarter of 2020’s figure.

If we look at just resale apartments, the average price rose sharply for both co-ops (+17%) and condos

(+15%) compared to a year ago. After bottoming at the beginning of 2021, prices have started to

come back in a big way. Both the average and median resale apartment prices are now at their

highest levels since 2019’s second quarter, which was aided by a rush of luxury closings due to pending

transfer and mansion tax changes.

Contract signings have remained strong since the spring, which has driven inventory down to the

point where many neighborhoods in Manhattan can be characterized as a seller’s market. Buyers can

still find value, but the dramatic decline in both time on the market and negotiability make it clear

that the fire sale has long ended.

The Manhattan real estate market has made an unbelievable comeback in the past year, which may

surprise the naysayers out there. But those of us who live and work here never had any doubts.

BHS 3

Manhattan All Cooperatives and Condominiums*

Q3 2021

Manhattan apartment prices averaged $1,898,525 in the third quarter, 11% less than a year ago. That decline is misleading however, as the 3Q20 figure was greatly inflated by an extraordinary number of ultra-luxury new development closings, many of which were at 220 Central Park South. There were 10 closings for over $30 million at 220 CPS—including a $99.9 million one—a year ago, something unprecedented in this market. This is also the reason the average condominium price fell sharply compared to the third quarter of 2020.

If we look at the median apartment price, which measures the middle of the market, we see a 7% increase from a year ago to $1,150,000. The number of closings rose to 4,490, their highest level since 2013’s third quarter.

Average and Median Sales Price

$2,13

5,85

0

$1,8

57,9

00

$1,6

52,6

61 $1

,957

,331

$1,8

98,5

25

$1,0

75,0

00

$1,0

68,7

50

$1,0

50,0

00

$1,16

5,00

0

$1,15

0,00

0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

3rd Q 20 4th Q 20 1st Q 21 2nd Q 21 3rd Q 21

Average Sale Price Median Sale Price

1,592

2,21

0

2,90

3

4,37

2

4,49

0

500

1,500

2,500

3,500

4,500

5,500


Average and Median Sales Price Number of Closings

Cooperative Average and Median Sales Price Condominium Average and Median Sales Price

$1,15

5,77

3

$1,18

9,57

5

$1,18

0,90

4

$1,2

81,7

45

$1,3

33,9

05

$775

,000

$770

,050

$787

,000

$820

,000

$835

,000

$500,000

$750,000

$1,000,000

$1,250,000

$1,500,000



$3,3

44,10

9

$2,6

20,7

75

$2,2

52,5

08 $2

,667

,790

$2,6

10,2

90

$1,7

50,0

00

$1,6

50,0

00

$1,5

23,8

13

$1,6

75,0

00

$1,6

65,0

00

$1,000,000

$1,750,000

$2,500,000

$3,250,000

$4,000,000



* Includes new development and resale apartments. 3Q21 data is preliminary and subject to revision in future reports. Data from the prior four quarters has been revised to include sales recorded after our initial reports were released.

BHS 4

Since 220 CPS dominated the data a year ago, it’s not surprising that the average new development closing price fell sharply compared to the third quarter of 2020. You also have to remember that virtually all the closings from a year ago had their contracts signed before the COVID-19 pandemic, and are therefore from a much different market. South of 14th Street accounted for 33.5% of new development closings last quarter, by far the most of any market.


Manhattan New Developments

Q3 2021

Sales by Area

7.3%

30.4%

5.9%19.9%

9.4%

26.9%

3Q20 3Q21

East Side

West Side

Midtown

Downtown (34th -14th St)

Downtown (South of 14th St)

Upper Manhattan

15.6%

33.5%

11.5%

15.8%

13.2%

10.4%

$2,3

27

$2,0

91

$1,8

54 $2

,020

$1,9

40

$1,800

$2,000

$2,200

$2,400

$2,600


Average Price Per Square Foot

$5,17

7,38

1

$3,4

96,3

79

$2,9

09,0

23

$3,2

70,0

45

$2,9

28,4

42

$2,4

65,0

00

$2,2

40,15

0

$1,9

77,5

00

$2,18

9,36

3

$2,10

4,05

9

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000



BHS 5

Manhattan Resale Cooperatives and Condominiums

Q3 2021

Both the average and median resale apartment prices hit their highest levels since 2019’s second quarter. At $1,724,750, the average resale price was 17% higher than a year ago, while the median price rose 9% to $999,250.


The average resale co-op price was higher than a year ago for all sizes of apartments except studios. The luxury market has come back in a big way, as the average price for three-bedroom and larger co-ops was 24% higher than a year ago.

Cooperative Average Sales Price

Studios were also the only condo size category with a lower average resale price than during 2020’s third quarter. Like co-ops, condo pricing gains were led by three-bedroom and larger units, which saw an 11% increase in their average price over the past year.

Condominium Average Sales Price

Studio 1-Bedroom 2-Bedroom 3+Bedroom All

3rd Q 20 $676,182 $986,634 $1,931,296 $4,800,766 $2,061,895

4th Q 20 $649,617 $957,113 $1,745,611 $4,565,429 $2,059,238

1st Q 21 $587,503 $946,749 $1,846,938 $3,924,246 $1,858,596

2nd Q 21 $593,698 $1,034,526 $1,834,832 $5,710,682 $2,259,250

3rd Q 21 $617,596 $1,047,345 $1,957,861 $5,332,794 $2,380,760

$1,4

69,7

88

$1,5

33,7

56

$1,4

33,0

13

$1,6

78,0

38

$1,7

24,7

50

$920

,000

$934

,499

$950

,000

$999

,000

$999

,250

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000



Studio 1-Bedroom 2-Bedroom 3+Bedroom All

3rd Q 20 $473,161 $718,453 $1,343,872 $2,759,335 $1,147,839

4th Q 20 $489,081 $707,793 $1,304,146 $2,854,757 $1,201,262

1st Q 21 $437,623 $706,299 $1,318,723 $2,862,497 $1,187,924

2nd Q 21 $451,659 $724,612 $1,313,471 $2,971,931 $1,281,523

3rd Q 21 $450,254 $742,282 $1,400,321 $3,416,680 $1,345,225

BHS 6

157

135141 144

117

75

100

125

150

175


Average and Median Sales Price Per Square Foot

The 25% decline in time on the market from a year ago is a clear indicator of how hot the market has become in a very short time. You can also see it in the fact that sellers received 97.4% of their last asking price, the highest percentage in almost four years.

Loft prices posted strong gains compared to a year ago, with the average price per square foot rising 15% to $1,636.

$1,4

24

$1,5

56

$1,4

26

$1,4

72 $1,6

36

$1,3

86

$1,3

92

$1,3

29

$1,4

47

$1,5

23

$500

$1,000

$1,500

$2,000


Average PPSF Median PPSF

Manhattan Resale Cooperatives and Condominiums

Q3 2021

94.6% 94.6%

95.2%

96.2%

97.4%

94.0%

95.0%

96.0%

97.0%

98.0%


Average Days on the Market Selling vs. Last Asking Price

Lofts

BHS 7

18.1%

24.2%

6.4%

18.2%

13.0%

20.1%

Upper ManhattanGenerally north of 96th Street on the East Side, 110th Street on the West Side pages 18-19

West SideGenerally 59th Street to 110th Street, Hudson River to west of Fifth Ave. pages 10-11

East SideGenerally 59th Street to 96th Street, Fifth Ave. to the East River pages 8-9

Midtown34th Street to 59th Street, East River to the Hudson River pages 12-13

Downtown34th Street to 14th Street pages 14-15

DowntownSouth of 14th Street pages 16-17

Percentage of Resales in Manhattan

Q3 2021

BHS7

BHS 8

The average price per room

rose 9% for prewar co-ops

compared to a year ago.

Condo prices averaged 4%

more per square foot than

during 2020’s third quarter.

Resale Apartments

Q3 2021

Generally 59th St. to 96th St., Fifth Ave. to the East River

East

Sid

eBHSID 20683398

BHS 9

BHSID 21327241

$333

,605

$280

,878

$364

,987

$290

,331

$175,000

$225,000

$275,000

$325,000

$375,000

Prewar Postwar

3rd Q 20 3rd Q 21

Studio 1-Bedroom 2-Bedroom 3+Bedroom

Percent of Sales

3rd Q 20 10% 32% 35% 24%

3rd Q 21 11% 32% 32% 24%

Median Price

3rd Q 20 $405,000 $750,000 $1,430,000 $2,547,500

3rd Q 21 $423,750 $707,500 $1,388,000 $2,735,116

% Change 5% -6% -3% 7%

CooperativeAverage price per room

Condominium Average price per square foot

BHSWEB#20178493

Q3 2021

East Side Resale Apartments

$1,3

66 $1,4

25

$300

$600

$900

$1,200

$1,500

3rd Q 20 3rd Q 21

BHS 10

Wes

t Sid

eBoth prewar and postwar

co-ops posted big gains in their

average price per room over the

past year.

At $1,544, the average price

per square foot for condos was 5% higher than a year ago. BHSID 21286129

Resale Apartments

Q3 2021

Generally 59th St. to 110th St., Hudson River to West of Fifth Ave.

BHS 11

BHSID 21334635


Percent of Sales

3rd Q 20 17% 36% 29% 17%

3rd Q 21 10% 34% 31% 25%

Median Price

3rd Q 20 $490,000 $748,750 $1,461,250 $2,700,000

3rd Q 21 $470,000 $765,000 $1,430,500 $2,750,000

% Change -4% 2% -2% 2%



Q3 2021

West Side Resale Apartments

$289

,304

$245

,833

$336

,521

$274

,745

$150,000

$200,000

$250,000

$300,000

$350,000

Prewar Postwar

3rd Q 20 3rd Q 21

$1,4

71 $1,5

44

$800

$1,000

$1,200

$1,400

$1,600

3rd Q 20 3rd Q 21

BHS 12

Mid

tow

nThe median resale price was

down compared to 3Q20 for

most sizes of apartments.

Condo prices did average 5% more per square foot

than a year ago. BHSID 21330210

Resale Apartments

Q3 2021

34th St to 59th St, East River to the Hudson River

BHS 13

BHSID 21320957


Percent of Sales

3rd Q 20 21% 44% 28% 7%

3rd Q 21 22% 40% 26% 12%

Median Price

3rd Q 20 $402,500 $746,250 $1,210,000 $2,440,000

3rd Q 21 $410,000 $725,000 $1,200,000 $2,215,000

% Change 2% -3% -1% -9%



Q3 2021

Midtown Resale Apartments

$196

,934

$209

,634

$220

,610

$219

,035

$50,000

$100,000

$150,000

$200,000

$250,000

Prewar Postwar

3rd Q 20 3rd Q 21

$1,4

27

$1,4

96

$0

$500

$1,000

$1,500

$2,000

3rd Q 20 3rd Q 21

BHS 14

While the median resale price

fell 26% from a year ago for

three-bedroom and larger

apartments, last year’s figure

was based on only eight

closings and must be viewed

with caution.

The average condo price per

square foot jumped 14%

over the past year to $1,647.

Resale Apartments

Q3 2021

34th St. to 14th St.

Dow

ntow

nBHSID 21323584

BHS 15

BHSID 21315825

$304

,545

$247

,134

$298

,196

$265

,874

$125,000

$175,000

$225,000

$275,000

$325,000

Prewar Postwar

3rd Q 20 3rd Q 21


Percent of Sales

3rd Q 20 23% 40% 32% 6%

3rd Q 21 22% 45% 24% 10%

Median Price

3rd Q 20 $585,000 $785,000 $1,537,500 $4,310,000

3rd Q 21 $527,500 $897,500 $1,950,000 $3,200,000

% Change -10% 14% 27% -26%



$1,4

46

$1,6

47

$600

$900

$1,200

$1,500

$1,800

3rd Q 20 3rd Q 21

34th St. to 14th St.

Q3 2021

Downtown Resale Apartments

BHS 16

Co-op prices rose sharply

compared to 3Q20, with the

average price per room up 18% for prewar, and 10%

for postwar apartments.

Condo prices averaged 7%

more per square foot than

during 2020’s third quarter.

Resale Apartments

Q3 2021

South of 14th St.

Dow

ntow

nBHSID 19920224

BHS 17

BHSID 21277916


Percent of Sales

3rd Q 20 17% 42% 31% 11%

3rd Q 21 13% 38% 34% 16%

Median Price

3rd Q 20 $610,000 $830,000 $1,800,000 $3,825,000

3rd Q 21 $565,000 $875,000 $1,757,500 $4,080,000

% Change -7% 5% -2% 7%



South of 14th St.

Q3 2021

Downtown Resale Apartments

$315

,031

$280

,608

$370

,945

$309

,841

$200,000

$250,000

$300,000

$350,000

$400,000

Prewar Postwar

3rd Q 20 3rd Q 21

$1,5

98 $1,7

08

$0

$500

$1,000

$1,500

$2,000

3rd Q 20 3rd Q 21

BHS 18

While the median resale price

rose 44% compared to a

year ago for three-bedroom

and larger apartments, the

small number of closings in

2020’s third quarter makes this

gain less meaningful.

At $960 per square foot, condo

prices were 7% higher than a

year ago.

Resale Apartments

Q3 2021

Generally North of 96th Street on the East Side, and 110th St. on the West Side

Upp

er M

anha

ttan

BHSID 18671558

BHS 19

BHSID 21332926


Percent of Sales

3rd Q 20 7% 35% 39% 19%

3rd Q 21 5% 33% 40% 22%

Median Price

3rd Q 20 $320,000 $407,500 $702,500 $775,000

3rd Q 21 $287,000 $460,000 $654,000 $1,119,000

% Change -10% 13% -7% 44%



Q3 2021

Upper Manhattan Resale Apartments

$133

,374

$135

,772

$137

,100

$145

,551

$0

$50,000

$100,000

$150,000

$200,000

Prewar Postwar

3rd Q 20 3rd Q 21

$895 $9

60

$200

$400

$600

$800

$1,000

3rd Q 20 3rd Q 21

©2021 by Brown Harris Stevens. All Rights Reserved. This information may not be copied, used or distributed without Brown Harris Stevens’ consent. While information is believed true, no guaranty is made of accuracy.

Prepared by Gregory Heym, Chief Economist, Brown Harris Stevens.

East Side445 Park AvenueNew York, NY 10022 212.906.9200

West Side1926 BroadwayNew York, NY 10023212.588.5600

West Side/Columbus408 Columbus AvenueNew York, NY 10024212.769.3000

Downtown130 Fifth AvenueNew York, NY 10011212.906.0500

Village831 BroadwayNew York, NY 10003212.381.6500

Midtown770 Lexington Avenue, 10th FloorNew York, NY 10065212.508.7200

SoHo451 West BroadwayNew York, NY 10012212.381.4200

Tribeca43 North Moore StreetNew York, NY 10013212.452.4500

Harlem2169 Frederick Douglass BoulevardNew York, NY 10026212.381.2570

Development Marketing451 West BroadwayNew York, NY 10012212.521.5757

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Residential Market Report

Third Quarter 2021 Residential Market Report Manhattan

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