NYC Real Estate Market Forecast 2022

2021 was a record breaking year in New York City real estate. The number of sales started high and just kept climbing. Month after month saw tremendous sales numbers. Even our normally sluggish summer consistently saw 300+ contracts being signed each week.

Historically, NYC averages 650-750 contracts signed in January and last year they hit an all time high at 922. So far, 2022 is trying to beat out 2021 with 941 contract signings this January.

That brings our current pending sales to 4,058, which is over 17% higher than last year. In the spring and summer of 2021, pending sales got so high that sales were backing up and taking longer to close. I really hope the banks and attorneys have staffed up this year, as it’s shaping up to be even busier than last year.

However, the market could be constrained by lower supply. As of Valentine’s Day, there were 5,132 homes for sale in Manhattan, which is down over 28% from last year. We are watching this start to drive asking prices higher, but we’re also just about to enter our usual big listing season.

And we did see a huge number of new listings come on the market in January -1,458, which is 19% higher than last year. Will that trend continue? Will demand keep up with supply? Will it outpace it?

What’s in my crystal ball for 2022?

• We will have a very strong listing season, with many sellers coming to market this Spring.

• Demand will keep pace and I think we’ll see a record breaking number of transactions again.

• Prices will rise a bit this year as foreign buyers continue to come back to NYC.

• We’ll return to a little more seasonality, with transactions dipping during the summer months as people get back to their routines.

Where do you see the market headed in 2022?