As 2021 winds down and we all gear up for 2022, real estate analytics firm UrbanDigs has released its annual report— which summarizes the past year and looks ahead to what’s next.
The report identifies several prevailing market trends and offers predictions for what’s in store for 2022.
Urbandigs analyzes various metrics in the New York City real estate market, including the number of new listings, contracts signed, sales closings, condos vs. coops, townhouses, and much more.
After a very turbulent 2020, the real estate sector soared back to life in 2021, and during some months, was operating at or near record levels.
What do industry experts foresee for 2022? You’ll just have to keep reading to find out!
The luxury sector (+$4M) was particularly popular during 2021. The report states that, between 2008 and 2021, six out of the top ten months for luxury dollar volume contracts happened in 2021.
With a rise in costs for everything from materials to labor, units in need of renovations or repairs fell out of favor with buyers, who instead opted for renovated units. “Buyers voted with their wallets that less work is more,” the report says.
Many consider a NYC property to be an investment, but the gains on NYC property haven't approached anything near the stock market. For instance, since 2008, the S&P 500 index has gained more than 200%. But a Manhattan resale condo has only gained roughly 25% during that time.
Depending on what happens with interest rates, some market segments could see prices falling next year. The report specifically points to luxury and new development condo prices, whose resale values rate hikes could affect the most.
We may be in for a slowdown next year. Per the report: “[We predict] a short-term spike in prices from recently signed luxury deals could be followed by a multi-quarter lull in 2022. Increased competition amongst sellers could cool the market and buyers may begin waiting for price cuts.”
The first quarter of 2022 may be significantly slower than the last quarter of 2021, as the market balances out, the report predicts. “The market could go sideways as buyers and sellers search for equilibrium in a more balanced market.”
Photography by: Mike C. Valdivia