Newswire

Sales And Rentals Market Recap

Photo credit: Urban Digs

On the sales front, new listings for Manhattan real estate surged as the market began reopening on June 22nd, adding the most inventory on a monthly basis since September 2019, and nearly 13% more than in June 2019.

In terms of a rebound in market activity, new listings are the most real-time indicator of future activity as they are the first step in the sales process. Contracts signed, a lagging indicator of activity, but the most real-time indicator of current demand, was down 70% compared to last June as buyers have not yet had the chance to go through the several stages of the purchase process: viewing, negotiating, due diligence, and down payment. As time goes on, the number of contracts signed should increase as more buyers move through this process. Listings taken off the market remained at what would normally be considered typical levels during June. This is to be expected as the market reopens and sellers try for sales.

Year-over-Year Summary for June (June 2020 vs June 2019) market activity:

  • New Listings: 1,537 (an increase of 13% compared to 1,364 in 2019)
  • Contracts Signed: 260 (a decrease of 70% compared to 884 in 2019)
  • Taken Off Market: 526 (a decrease of 27% compared to 832 in 2019)

The two red bars are the two values displayed under each chart: June 2019 and June 2020

Year-Over-Year New Listings for the Month of June:
2019: 1,364
2020: 1,537 (+13%)


The two red bars are the two values displayed under each chart: June 2019 and June 2020

Year-Over-Year Contracts Signed for the Month of June:
2019: 884
2020: 260

The two red bars are the two values displayed under each chart: June 2019 and June 2020

Year-Over-Year Taken Off Market for the Month of June:
2019: 832
2020: 526

Manhattan Rental Market:
Highlights:

  • Market reopened
  • Highest number of monthly new listings since July of 2017 (+14% year-over-year and +27% month-over-month)
  • Lease signed activity still depressed (-57% year-over-year)

A deluge of new rental listings hit the market in June as listing activity returned to seasonal levels during the start of the typically busy summer season. June 2020 saw 14% more listings come online compared to June 2019 as landlords attempted to roll over a large number of summer leases. Leasing activity, despite an increasing trend, remained far below typical levels, falling 57% from a year ago. The number of leases signed will likely increase as July begins as new viewing norms are established and accepted by renters.

In the meantime, the balance of supply versus demand in rentals suggests landlords may have to reduce rent or increase concessions as summer goes by.
Year-Over-Year Summary for June (2019 vs 2020) market activity:

  • New Rental Listings: 5,517 (an increase of 14% compared to 4,834 in 2019)
  • Lease Signed: 1,950 (a decrease of 57% compared to 4,548 in 2019)
  • Off-Market: 786 (a decrease of 22% compared to 1,006 in 2019)

June 2020 Week-to-Week Market Activity Breakdown:
Rentals data source: RLS. Monday to Sunday defines a “week” of data.

YEAR-OVER-YEAR NEW RENTAL LISTINGS
The two red bars are the monthly values displayed under each chart: June 2019 and June 2020.

New Listings During the Month of June:
2019: 4,834
2020: 5,517 (+14%)

YEAR-OVER-YEAR NEW LEASE SIGNED/RENTED
The two red bars are the monthly values displayed under each chart: June 2019 and June 2020.

Leases Signed During the Month of June:
2019: 4,548
2020: 1,950

YEAR-OVER-YEAR RENTALS TAKEN OFF MARKET
The two red bars are the monthly values displayed under each chart: June 2019 and June 2020.

Listings Removed During the Month of June:
2019: 1,006
2020: 786

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