Real Estate Market in April 2022

Manhattan Condo & Coop sales remain high

• There was the highest number of sales in the Q1 in 33 years of tracking.
• Based on overall price trend: prices are higher than before the pandemic.
• Bidding war market share rose for the fourth straight quarter.
• Listing inventory declined 4.4% to 6,906 for the third straight quarter.
• Market absorption rate declined significantly: the number of months to sell all listing inventory at the current sales rate is now 5.8 months. It is 34.1% faster than the prior year quarter and 23.7% faster than the same period two years ago before the pandemic.

New Development sales stay hot but prices are stabilizing

• Condominium projects across Manhattan, Brooklyn, and Queens reported 1,178 sponsor deals in Q1, 15% increase from the previous quarter.
• The median unit price was up 25% from the same period in 2021, while median price per square foot was up 20%. 
• While the number of transactions increased city-wide, pricing remained relatively unchanged between February and March across aggregate dollar volume, median unit price, and median price per square foot.
• Also, in the first quarter, 46 new developments achieved offering plan acceptance, introducing a total of 725 new units that are now eligible for sale.

Home prices and mortgage rates are rising

• Home prices nationally rose 19.2% year over year in January, up from 18.9% in December, according to the S&P CoreLogic Case-Shiller Index.
• The average rate on the 30-year fixed jumped from 3.25% (end of 2021) to 4.67% (March 2022). Now it is flirting with 5%.
• The monthly payment for a median-priced home has jumped 30% in the past year, far outpacing 8% growth in consumer prices.

"Pied-a-terre" home sales hit record highs after the peak of the pandemic

• Contract signings for part-time residences are up about 70% from pre-pandemic levels.
• This demand is highly driven by remote / hybrid work, rising rents, and renewed after-lock-down freedoms.