Manhattan home bidding wars gain momentum with economic recovery: Bloomberg

  • Manhattan co-op and condo purchases totaled 3,585, the most for a first quarter in more than three decades of record keeping by appraiser Miller Samuel, Bloomberg reports.
  • “The [housing] the market is not as frenetic as it used to be, but the pace of the market is unusually fast,” concluded Miller Samuel. “It’s still hot, really.”
  • Deals jumped 46% year-over-year as office goers sought to join the group as the economy gradually recovered from the pandemic.
  • Competition was intense in the luxury market, which has seen its second-highest rate of bidding wars in the five years since Miller Samuel and broker Douglas Elliman Real Estate tracked.
  • Purchases above asking price accounted for 9.3% of all transactions, a four-year high and up from 3% in the first quarter.
  • The stock was down 4.4% from a year earlier to 6,906 apartments available in the first quarter.
  • At the current rate of transactions, it would take 5.8 months to sell these homes, well below the 10-year average of about eight months.
  • The median price of closed deals in the first quarter was $1.19 million, up 11% year-on-year.
  • Buyers bought 47% of transactions in cash, which is in line with the market average, meaning that rising mortgage rates would not ruin demand.
  • Coldwell Banker Warburg saw more apartments hit the market in the spring, when buyers were typically emerging from their hibernation. Demand can be incredibly high among buyers looking to lock in rates before continuing to climb.

Laura J. Boyer