September Market Update
We, at the LevinKong Team, hope that you are safe, well, and enjoyed Labor Day weekend. As we approach the end of summer, New Yorkers are soaking up the remaining perks of this sun-drenched season. For some, that means packing a picnic to enjoy the relaxation and sprawling landscape of Central Park; for others, it’s heading out east to savor those final magical moments at the beach.
One thing that didn't take its typical summer vacation was our New York City real estate market. Even the emergence of the Delta variant was unable to offset our market's momentum. As New Yorkers continued their return, and buyers from around the country and the world eyed properties in the city, New York's recovery marched on. Both the sales and rental markets have benefited from demand outstripping supply. There are certain neighborhoods and market segments that are lagging, and buyers have shown an intolerance to properties that they deem overpriced. However, the general market conditions are strong.
Almost every piece of housing data from the previous couple months demonstrates that the rebound is in full swing. In the second quarter of 2021, the median sales price of condos and coops had risen to their highest levels of the last eight quarters -- to $1.65 million and $820,000 respectively, according to the Miller Samuel Report. New leases in Manhattan were up 54.7% from this time last year as well.
The market has tightened predominantly because of increased demand, rather than lack of supply, which is not true of most real estate markets nationwide. This bodes well for the long-term health of our market. In Manhattan, supply is down 26% year-over-year, while demand is up 241%. For the same period, Brooklyn's supply is down 25% and demand is up 119%. Currently only 20% of actively listed inventory has been on the market for more than 30 days. Buyers should see more options as new listings come to market later this month.
As we've previously mentioned, we are still seeing a very active luxury market, fueled by prices that are below the peak numbers from five to six years ago. A large portion of this momentum is being driven by second-home buyers from other parts of the country, and the world. Low interest rates, ramped up liquidity among the world's wealthy, hedges against inflation, and the relative weakness in the new development sector are all playing their part in this high level of luxury sales across our market.
With proper guidance, there are many ways to take advantage of this dynamic and intricate market. More than ever, a data-driven, research-based approach rooted in decades of experience, will equip our clients to thrive in this environment. Please let us know if we can answer any questions you may have about the market, or how best to navigate complicated decisions.