Manhattan Apartment Sales Soar! Is This the Bees Knees of Real Estate?!

Apartmentgeddon Avoided! Sales Up Way Up!

People the real estate market in Manhattan is not dead! It's not even mostly dead! There's a very big difference between mostly dead and all dead. Mostly dead is slightly alive. And right now Manhattan apartment sales are THRIVING! Up a whopping 29% from last year according to reports from Miller Samuel and Douglas Elliman. That's like finding a golden ticket in your beet flavored Wonka bar! And the total value? A mind blowing $5.7 BILLION! You hear that Michael? Billion. With a 'B'! This isn't some Dundie Award nonsense; this is SERIOUS BUSINESS.

Luxury is King! Bow Down Peasants!

The real kicker? It's the fancy pants apartments that are flying off the shelves. We're talking apartments over $5 million! Sales for these jumped nearly 50% year over year according to Compass. Even better are the properties priced at $20 million or more – ultra high end the best first quarter since 2019 said Compass! These people are immune to things like mortgage rates and interest rates. Why? Because they're buying with CASH! Like me when I bought Schrute Farms... though mine was more of a 'beet currency' situation. These guys buying now are the 1% of the 1%.

Cash is King Part Deux!

Speaking of cash 58% of sales were all cash transactions. And for those apartments above $3 million? A staggering 90% were cash deals! That’s more cash than Jim Halpert has ever seen in his entire pathetic life! These buyers are prepared for any economic downturn and so should you. But are you? Ask yourself “What kind of car is best?” It’s not the Pontiac Aztek I can tell you that much!

Mid Market Misery: Even I Have Sympathy... Almost.

Now it's not all sunshine and beets. The 'mid market' – those humble abodes priced between $1 million and $3 million – saw a decline. Signed contracts dropped 10%. Poor souls. Almost makes me want to share my emergency beet reserves… almost. But the lower end performed better relatively speaking. Though it's important to remember what Sun Tzu said “Keep your friends close but your enemies closer.” The same applies to real estate prices. Keep an eye on them all!

Boomerang Wealthy and the Great Wealth Transfer: Schrute Farms Here I Come!

Brokers are saying it's all thanks to macro and micro factors. People are ditching volatile stocks for the stability of bricks and mortar. It’s like choosing a good sturdy tractor over a flimsy foreign made car. Plus those 'boomerang wealthy' folks are fleeing Florida and Los Angeles like the plague! And let's not forget the “great wealth transfer!” All that baby boomer cash is flowing to their offspring fueling even more purchases. I should have thought of that with Schrute Farms…

The Future is Bright! (For the Wealthy Anyway.)

While the past performance is not indicative of future results signed contracts in March are also looking strong particularly in luxury. Signed contracts for those apartments over $10 million tripled in March! Tripled! Like the number of arms on a Ukrainian farm worker… Okay maybe that was insensitive. But the point is Manhattan is thriving. It's time to invest! Just remember always have a plan because as I've always said 'before I do anything I ask myself 'Would an idiot do that?' And if the answer is yes I do not do that thing.'