February 2022 Market Report: Sales Prices Increase While Inventory Drops

If January started with fears about the Omicrom virus, February was all about rising interest rates. However, where Manhattan real estate is concerned, neither scenario appears to put a dampener on a market that’s still making up for lost time. Despite an almost 10% drop in contracts signed, a result of declining inventory, overall, luxury contracts signed were up Y-O-Y as the average sales price rocketed a massive 33.6% and the average sales price for condos increased 20% to just shy of $3 million.

Prices are expected to keep rising as inventory declines. Compounding the effect is the surrounding suburbs that are still contending with a lack of inventory and fervent bidding wars.

Downtown Manhattan was the most popular place to live soaking up 28% of the February action. Next was the burgeoning Upper East Side with 21% of contracts signed, followed by Midtown East with 18%. The sheer number of co-ops meant that they dominated 55% of the market, followed by condos with 45%.

The Bellemont, Upper East Side.

Biggest Deals For February 2022

The Robert A.M. Stern designed boutique Bellemont development dominated high priced sales in Manhattan during February. The perennially popular, 15 Central Park West, known for its celeb residents, also designed by Stern, wracked up a couple of high-priced contracts too.

The Bellemont (1165 Madison Ave — Full floor) — $24.95 million
15 Central Park West — $20.5 million
15 Central Park West — $21.95 million
The Bellemont (1165 Madison Avenue, 7th Fl) — $18.75 million
1801, 35 Hudson Yards — $17.95 million
One Madison (23 East 22nd Street) — $16.995 million

Quay Tower at 50 Bridge Park Drive, Brooklyn Heights.

Downtown Brooklyn Drives Contracts

It’s hardly surprising that the North West Brooklyn neighborhoods of Brooklyn Heights, DUMBO, Carrol Gardens dominated sales with new developments The Olympia, One Brooklyn Bridge Park and One Clinton Street, Quay Tower, 11 Hoyt Street stealing the headlines. Also the mix was the North Brooklyn triumvirate of Bushwick, Greenpoint, and Williamsburg hiking up the average price of Brooklyn sales.

The Average Sales Price of a Brooklyn Condo is Now $1.3 Million

Significant to prospective home buyers was the almost 20% Y-O-Y price increase, with the average Brooklyn home now $1.288 million and the median $950,000. If you want to buy a Brooklyn condo, you’ll now have to pay $1.9 million on average (up 15% over last year) as inventory has fallen by 19%.

N.W. Brooklyn enjoyed 39% of the market share of contracts signed in February followed by the single-family home and co-op heavy South Brooklyn (Brighton Beach, Sheepshead Bay, Bay Ridge, Bensonhurst, Coney Island) with 33%. Condo contracts dominated with 50% of the market share compared to houses with 31% and co-ops with 20%.

One Brooklyn Bridge Park in Brooklyn Heights. Picture: Courtesy of Compass.

Other Brooklyn News

Rental Evictions Spike Along With Rents

With average Brooklyn rental prices, skyrocketing to over $3,000 a month for a 649 sq ft apartment, landlords are keen to capitalize on the market. For many, that means evicting tenants who didn’t pay rent during the rental moratorium and now cannot resume payments or whose evictions were put on hold.

“We want to be clear that we expect the court to adjourn each case until a tenant has been connected to a lawyer,” N’Jelle Murphy, tenant leader with the Flatbush Tenant Coalition told The Real Deal.

While many of the tenants currently facing eviction may not be able to afford to buy homes of their own, the dramatic increase in Brooklyn rents is a sharp lesson in the perils of renting, which is why, while inventory is available, buying is a prudent hedge to inflation and rising rents.