The Manhattan residential market remained hot in 2022’s first quarter, with closings 44% higher than a year ago. Most price indicators were up sharply from the first quarter of 2021, which was the market’s low point after the start of COVID-19.
Although 20% higher than a year ago, the average resale price was down from the fourth quarter of 2021. This can be attributed in part to a decline in ultra-high-end condo resales. Co-ops fared better compared to the prior quarter, as their average price was 2% higher than 4Q21.
Buyers had to move fast in the first quarter, with apartments spending an average of 102 days on the market. That was 28% less time than a year ago, and the lowest figure since 3Q18. The market continued to favor sellers, who received the highest percentage of their last asking price since 2017’s third quarter.
While it would be hard for the market to repeat what it accomplished last year, 2022 has started strong. Signed contracts in the first quarter were up from a year ago, which bodes well for second-quarter closings. Limited inventory has brought prices up sharply from their bottom a year ago, but not compared to the pre-COVID market. In fact, the average resale apartment price in 1Q22 was just 1% higher than the second quarter of 2018.
As the city’s economy continues to recover—which should be helped by the $45 billion in Wall Street bonuses last year—demand for apartments will remain strong, even as mortgage rates trend higher. With inventory still at low levels, sellers remain in charge, but should be careful not to push prices too much.
