If the recently released 2021 Manhattan Fourth Quarter Residential Market Report is a barometer for what lies ahead, I am excited and hopeful for 2022. Of course, we know the market is unpredictable due to various factors that impact its course, but for now, we were thrilled to see 2021 end on a very high note for Manhattan real estate and what that might mean for the new year.

While we suspected all along that the numbers would fare well, the Q4 data shows it was the strongest on record in the past 32 years, as was the 3rd quarter. In fact, Manhattan experienced one of its best real estate markets in a very long while, with $30 billion in sales volume and over 16,000 contracts signed.

Supply has declined significantly given the high volume of sales activity these past few quarters, which has shifted us into a seller’s market. Apartments are now selling at 97.6% of their last asking price—the highest figure since 2017. Yet buyers are still taking advantage of the low interest rates while they can, in anticipation of a rate hike in 2022. According to chief real estate analyst Jonathan Miller, CEO of Miller Samuel, “the Manhattan market is likely to remain robust into the first half of this year, given the shrinking inventory and continually strong financial markets”. There are no signs of slowing in the immediate future.

As Brown Harris Stevens CEO, Bess Freedman affirms, “The good news is that the foreign buyer has returned, Wall Street bonuses are incredible, and we have a new mayor, which all bodes well.” There remains much to be optimistic about in 2022 despite the recent rise in the Omicron variant.

I am personally excited about the tenor of the current market, and I look forward to working with many of you this year. Please reach out with any questions you may have about the report and what it means for you personally, whether you’re looking to buy or sell.