What Is Causing the Current Hot Streak
In Q2 2021, the median resale price for a Manhattan apartment reached almost $1 million, the highest it's ever been. During this time, average sales prices increased by 12% to nearly $2 million. In taking advantage of lower prices, families are looking to buy larger apartments by using low mortgage rates that have helped real estate demand remain strong. The Manhattan real estate rebound is happening much quicker than most expected.
The Effect on Penthouses
Because of an increased desire to have private outdoor spaces, buyers are more interested in penthouse units than ever before. The combination of secure living in the sky in a luxury apartment with a fully serviced building has proven to be what has driven the increase in penthouse sales in 2021. In the past, penthouses were often saved until the end to be sold by developers to help ensure proper value by making the units scarce and special. Today's buyers value the potential of private outdoor space and are pushing for penthouses earlier and are buying them at a record pace in Manhattan.
Current Apartment Inventory
There are currently nearly 30% fewer apartments for sale than there were at this time one year ago, staying steadily below the historical average. There are many luxury apartments available in Manhattan, which has even led to landlords fearing oversaturating the market with the additional buildings that are not listed yet. Even given this availability, prices have increased for three and four-bedroom apartments from Q1 2021. If you are looking to rent or buy a Manhattan apartment, you must act fast as sales are at an all-time high. If you have other questions related to residential or commercial closings or issues related to eviction or foreclosure, then call us so we can help!
Get Professional Assistance
To schedule a consultation with an experienced attorney at The Law Offices of Melvin Monachan, call us at (347) 389-1682 or contact us online.