One year ago this month, New York’s real estate industry — and the city as a whole — effectively shut down with few deals being made as Covid-19 cases skyrocketed.
But a lot can change in a year.
The week ending March 25 saw 341 contracts signed in Manhattan, according to UrbanDigs’ weekly look at the borough’s real estate market. That’s a 400 percent increase from the same time last year — not a surprise, as the city was in lockdown at the time.
But the number of contracts signed in Manhattan this month is the most of any March since 2007, and there are still a few days to go. As of March 25, some 1,224 contracts were signed. If that pace keeps up, the number would be nearly 1,300 by the end of the month.
While the number of new listings was slightly below last week’s levels (383 last week versus 455 the week before), it was also a significant increase from the same time last year — 471 percent.
Fewer listings were also removed from the market, suggesting that sellers are willing to keep their properties listed if it means they can make a deal. If demand continues at the current levels, the borough’s years-long trend of a supply glut could reverse itself.
“As unbelievable as it sounds, if this trend continues, Manhattan could find itself facing a supply shortage in the near future,” John Walkup, the co-founder of UrbanDigs, wrote in this week’s report.
Demand is also up in the rental market, which has seen a surge in the number of leases signed in March. According to the report, more than 1,000 lease deals were made last week, the first time that’s happened since 2019.
“While landlords still have many units to lease, the general decrease in inventory, due to more leases signed versus new listings, suggests that the worst market conditions for landlords in recent years may be coming to an end,” Walkup said.