The big story this week is the return of the buyers to the market as noted by a surge in contracts signed. The number of deals reported more than doubled from last week, from 68 to 155. To put this in context, Manhattan contracts signed doubled from last week which brings the total number of contracts signed to the highest since pre-pause/lockdown. This is a major development for the Manhattan market but it should be noted that the figure is still low for the year (-15% compared to 2019) and only comparable to similar holiday weeks of 2019.
As it typically takes buyers a few weeks to proceed from first look to signed deal, contracts signed is a lagging indicator but this jump in activity likely represents the first wave of the pent-up demand, suggesting that overall market activity is resuming.
On the supply side, the inventory for Manhattan homes continued to increase an elevated level. During the third week of July, 554 new listings arrived on the market. This is the third weekly addition of 500 or more units. While this is typical of a busy active season, the lack of typical season contract activity means overall inventory is quickly growing. With market dynamics favoring buyers, sellers coming to market may opt for more competitive pricing, while sellers already on the market may begin repricing to attract buyers.
The number of listings taken off the market remains at what would normally be considered typical levels for an active season. This is to be expected as sellers try for sales during the first weeks of reopening.
Year-over-Year Summary of 3rd Week of July 2020 (Monday 7/13/20 – Sunday 7/19/20) market activity:
- New Listings: 554 (an increase of 109% compared to 265 in 2019)
- Contracts Signed: 155 (a decrease of 15% compared to 182 in 2019)
- Taken Off Market: 181 (a decrease of 8% compared to 196 in 2019)
Year-Over-Year New Listings for the 3rd Week of July:
2020: 554 (+109%)
Year-Over-Year Contracts Signed for the 3rd Week of July:
2020: 155 (-15%)
Year-Over-Year Taken Off Market for the 3rd Week of July:
2020: 182 (-8%)