I thought there was no better way to start this week’s email than with this affirming statement by our CEO Bess Freedman. While we suspected the next quarterly report would be positive—given the number of record-breaking contract signings and deals these past few months—we now have the actual data confirming our suspicions in the recently released 2nd Quarter 2021 Manhattan Residential Market Report.

And while the numbers look great on paper, we must keep in mind that the significant increase in activity which doubled from the previous year—is being compared against a period when New York was on lockdown and there was little to no activity. Nevertheless, the market has bounced back to normal with sales volumes at pre-pandemic levels. The New York Times describes the “surge in closed deals this past quarter as strong even by historical standards”. It adds, “Not since 2015, a time of a major boom, has there been a three-month period with comparable activity...”

The luxury market performed exceptionally well with the average resale price up 21 percent from the last quarter, driving the overall average price across all market segments up to 12 percent. Governor Cuomo’s announcement in May that the city was reopening helped drive a lot of the “frenzy and intensity of the market,” described by real estate analyst Jonathan Miller, CEO of real estate appraisal firm Miller Samuel. His assessment is in line with every other analyst that “NYC is rebounding much faster than most participants expected.”

So the good news is New York isn’t dead for all those who lost faith in our great city. The joke is on them. All kidding aside, we should expect to see activity levels remain steady. As I recently pointed out that this year is different such that seasonal barriers are not impacting activity, I imagine things will pick up from where they currently are as we approach the fall season. A recent survey from the Partnership for New York City found that 62% of Manhattan’s one million office workers will be returning by September. Time will tell.

If you have any questions about the Q2 report, please reach out.