Elegran Market Update: July 2020

Written By Jared Antin | July 07, 2020 | Published in Real Estate Market Trends, How To NYC, Elegran Insider
2020%2f07%2f07%2f14%2f30%2f35%2fa226597d f1dd 402b bfef bc14eb1e4a65%2f2020 06 05 14 30 17 4e976efe ab70 4461 9bd0 aeb94b4eba79 2020 04 13 20 13 55 b8aa557b 9710 4b55 91b7 e70651f0feaf blog monthly market update nyc image 19

The market data for the month of June, the first partial month of the industry reopening in New York City, reflects a marked uptick in activity. For the first eight days that real estate was open in June, Manhattan saw a noticeable month-over-month uptick in the total number of units for sale and number of contracts being signed.

Manhattan supply (non-new development) saw a robust 24% increase in listings month over month, but remains 16% lower than the same period in 2019 with 5,329 apartments available for sale (6,500 is the norm). With supply returning to the market providing buyers with more choice, June saw a marked uptick in buyer activity with in-person showings now being permitted.

Manhattan wide, we saw a 55% increase in contracts signed in June compared to May. Typically, the timeline is two to three weeks from seeing an apartment to signing a contract, it is expected that the contract signed volume will lag the increase in supply by a few weeks. Look for this number to continue to increase rapidly through the summer as buyers and sellers come off the sidelines.

The bid-ask spreads have narrowed consistently since they peaked in early April when the average offer was approximately 14% off the asking price. Over the last three months, we have seen this figure decrease to approximately 7%. Sellers are increasingly standing firm on their price, and it is clear the fire sales and 20% discounts are not occurring except in rare circumstances.

The average accepted offer peaked in late April at 8% off the asking price and has continued to decrease to an average of just over 4% at the end of June. At the end of June, apartments priced over $1M saw slightly more negotiability, with an average discount of 5.5%, compared to those apartments priced below $1M, that saw an average discount of 3.4%.

The rental market continues to see increases in inventory, up 31% in the last month. This surge is a result of both a compression of the seasonal inventory coming to market and lease breaks as existing tenants are looking to sublet. Similar to the sales market, rental demand measured by the quantity of new leases signed is increasing.

Supply and contract signed volume are leading indicators of market health, while closed sales and pricing are lagging indicators. With closed sales and price discovery dependent on closed transactions being filed into the public record, the available closed sales data being analyzed are largely deals that were signed pre-Covid and do not reflect transactions that occurred during the pandemic.

As more deals that were signed during Covid close and are reported we will be able to report more accurately on the true effects on pricing. Nevertheless, it is important to be mindful that the market today is vastly different than it was in late March and early April and the extreme nature of our current climate makes outlining the course of recovery one that we will analyze month by month and as the market stabilizes.

Because of the current crisis, it is important to know that these statistics alone do not tell the full story and headlines can be misleading. In practicing due diligence, any buyer, seller, investor or renter entering the market should speak to their Elegran agent about how their particular situation fits into today’s market realities.

Blog Archive


This information is not verified for authenticity or accuracy and is not guaranteed and may not reflect all real estate activity in the market. © 2021 REBNY Listing Service, Inc. All rights reserved. RLS IDX Data display by Elegran LLC. IDX information is provided exclusively for consumers’ personal, non- commercial use and that it may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing.

Elegran LLC may or may not be the exclusive listing agent of the properties being displayed on Elegran.com. All data displayed on Elegran.com is presented for informational purposes only and should be independently confirmed by all customers. All Information is compiled from both public and private sources including, but not limited to the RLS, MLS and ACRIS; each of which is assumed to be reliable. All information displayed is subject to errors and omissions regarding apartment specifications and final sale prices, and further, any unit listed may have had its listing withdrawn without notice subsequent to such information being compiled. No representation is made as to the accuracy of any description (ie: listing, close sale data, and/or building description) of any building or individual unit. All measurements and square footage are approximate and all information herein should be confirmed by customer and/or their attorney. Elegran LLC, its members, affiliates, and contributors adhere to New Your City, New York State, and United States Fair Housing Laws.