Even in a typically slow month, the New York real estate market remained strong, especially on the high end where the luxury market has seen a notable improvement on January signed contracts. Contracts signed were up around 20% compared to 2021 and up 35% from January 2020 (pre-Covid) and up around 65% from 2019. Those are impressive numbers and negate what much of the media reported on for the last two years, about the wealthy fleeing Manhattan to save on taxes and avoid COVID.
Luxury Market Forty contracts were signed last week at $4 million and above in Manhattan, 11 more than the previous week. Last week’s total was the highest of 2022, and the first time this year that the luxury market cracked 30 or more contracts signed at $4m or above. In contrast to January’s lousy stock market performance, Manhattan’s luxury real estate market recorded a total of 102 signed contracts at $4m or above, the strongest January since the Olshan Report started keeping track in 2006.
New Development After capping off 2021 with stratospheric sales, New York’s new development contract activity came back to earth in January. Homebuyers signed contracts for homes in Manhattan, Brooklyn and Queens new developments asking a cumulative $760 million, down 28% from last month, according to Marketproof. Median price per square foot and unit price fell 8% and 12% month-over-month, respectively, and the number of contracts signed fell 13% from December to 313. The number of deals was about the same as in January 2020, but prices are way above their pre-pandemic levels. Median price per square foot is up 16% from two years ago and median unit price is up 31%.
New York City Bans Gas Hookups in New Buildings On December 15, the New York City Council passed Int. 2317-2021 in a 40 to 7 vote effectively banning new fossil fuel hookups in buildings for heat, hot water, and kitchen stoves starting as early as 2024. Similarly to the All-Electric Building Act introduced in the New York State Senate, the local law marks New York City’s latest push toward building decarbonization.
The COMPASS Luxury Division just launched its 2021 Ultra-Luxury Report, a year-end market snapshot of $10M+ sales nationwide, as well as insights, trends and lifestyles aligned from coast to coast. The e-book can be viewed here.
