2021 poised to be good year for townhouse sales

Demand grew for single-family homes through 2020

New York /
Feb.February 16, 2021 08:00 AM
2020 was strong for townhouse sales in New York City. (Getty)

2020 was strong for townhouse sales in New York City. (Getty)

Last year may have been “garbage” for New York City’s residential market, but there was one bright spot: townhouses.

That’s according to the year-end townhouse report from Serhant, which tracked sales in 2020. It showed the median sale price rising to $3.6 million — up 16 percent from 2019.

The median price per square foot was also up, to $1,249. And total sales volume for the year was up 27 percent, hitting $875 million.

“The desire for townhomes decreased over the past 10 years as buyers’ preferences shifted toward new development condos,” Serhant’s Garrett Derderian said. “However, with people spending more time at their homes because of the coronavirus, the desire for townhomes surged as space became a top priority.”
Townhouse demand was stronger in some neighborhoods than others. According to Derderian, the submarkets of Downtown Manhattan (which includes pricey enclaves like the West Village, Chelsea and Tribeca) and Northwest Brooklyn (home to Brooklyn Heights, Park Slope, Cobble Hill and other neighborhoods) were the most popular, with buyers pushing prices up.

The median price for Downtown townhouses hit $10.75 million in the second half of the year, a 60 percent increase the previous quarter, when in-person showings were not permitted.

Northwest Brooklyn had the most recorded sales, with 102. One of those, a $25.5 million townhouse in Brooklyn Heights, marked a new record for the borough and was one of several sales above $10 million in the neighborhood.

“There is simply not enough supply of townhomes” in the borough’s more desirable enclaves, Derderian said. “Especially in Northwest Brooklyn, the price points tend to be more appealing, which drove up demand.”

That tracks with the year-end report from Leslie J. Garfield, a brokerage specializing in townhouse sales. In Brooklyn, “pent-up demand paired with a renewed interest in more space, privacy, and outdoor space has pushed the market forward at a rapid pace,” the firm wrote.

Its year-end report, however, is slightly less rosy than Serhant’s; Leslie J. Garfield saw its townhouse sales decline by 45 percent in Manhattan and 13 percent in Brooklyn, and the average sale price for townhouses slid, too.

Still, the firm noted that an “uncharacteristically busy” December is a reason to be optimistic about 2021.

“There seems to be a new buyer pool for townhouses, made up of purchasers who have migrated from co-ops and condos to single-family townhouses or multi-family conversion opportunities,” the report said.





    Related Articles

    arrow_forward_ios
    A photo illustration depicting the massive changes at 2797 Atlantic Avenue (Google Maps, Getty Images)
    Church plans 343 apartments in East New York
    Church plans 343 apartments in East New York
    145 Reade Street (Illustration by Kevin Cifuentes for The Real Deal with Getty Images, Zillow)
    Real estate investor lists Tribeca townhouse for first time in 20 years
    Real estate investor lists Tribeca townhouse for first time in 20 years
    Corcoran's David Mayer and Compass' Augusto Bittencourt (Corcoran, Compass, Getty)
    Foreign investors shift real estate strategies as dollar strengthens
    Foreign investors shift real estate strategies as dollar strengthens
    Ron Burkle and 704 Broadway (Modlin Group, Hugoatyugo/CC BY-SA 3.0/via Wikimedia Commons)
    Billionaire Ron Burkle selling Noho penthouse
    Billionaire Ron Burkle selling Noho penthouse
    Tim Foley (Anywhere, Getty Images)
    Anywhere Real Estate’s Tim Foley resigns
    Anywhere Real Estate’s Tim Foley resigns
    (Illustration by The Real Deal with Getty)
    Rising mortgage rates lock out homebuyers, trigger layoffs
    Rising mortgage rates lock out homebuyers, trigger layoffs
    United Kingdom Chancellor of the Exchequer Kwasi Kwarteng
    Turmoil hits United Kingdom mortgage market
    Turmoil hits United Kingdom mortgage market
     Lakeland Bank president Thomas Shara (Lakeland Bank, Illustration by The Real Deal with Getty)
    In redlining case, New Jersey lender to pay $12M
    In redlining case, New Jersey lender to pay $12M
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...