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Happy New Year, 

The Fourth Quarter 2020 Manhattan Market Report, released yesterday, indicates there was an uptick in sales activity, rounding out a tumultuous 2020 on a positive note. As illustrated in the chart below, we’ve experienced a mounting momentum with increased contract activity since July. Also important to note is we closed the year in December with the highest number of contract signings in 2020 including pre-pandemic.

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We expect to see closings continue to rise, with the worst of the market now behind us and confidence slowly rebuilding on the cusp of the COVID vaccine widespread distribution to the general public.

According to the report, the overall average resale price fell 3% compared to the prior year, which doesn’t appear terribly bad on the surface; but keep in mind that last year’s fourth quarter was relatively weak given the push to buy luxury apartments in the first half of 2019 due to the July transfer tax increase. Another positive indicator in the report was the average days-on-market dropped to 132 days from 153 days in Q3.

While the pandemic took its toll on the market and left us with a high level of uncertainty at the onset, we find ourselves today “pleasantly surprised by how the year ended” as Brown Harris Stevens CEO Bess Freedman stated.

As I visit with clients, there seems to be an overall sense of optimism, albeit somewhat guarded, among most of them which ultimately helps build consumer confidence. I tend to share their sentiment and enthusiasm.

Please visit my website to download the Fourth Quarter 2020 Residential Market Report; and for additional information on inventory by type and size, please see our December 2020 Inventory Report.

As always, please reach out if you have questions regarding the data presented or if you’re simply seeking guidance with your real estate needs.  

Warm regards,

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Serjik ( Serj )
Markarian
Lic. Assoc. R.E. Broker
212.796.6110
smarkarian@bhsusa.com
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