Manhattan Market at a Glance:
- 3,427 closed sales
- 2,266 contracts signed
- 109 average days on market
- 6,480 homes in inventory
- $1.1175M median price
- $1,712 average price per square foot
Q3 | Manhattan Market Report
The Manhattan market during the The Quarter of 2023 presented signs of improvement and market stabilization. Although sales have declined compared to the previous years's strong performance, there are noticeable positive trends in this past quarter. During this period, there were 3,400 property closings, generating $6.8 billion in sales volume, indicating an ongoing positive stabilization of the market.
The annual decline in sales is slowing down, various factors are contributing to this shift, including: the potential for an economic "soft landing," a pause in interest rate increases, lower inflation, modest property price reductions, soaring rents, and inherent demographic demand, all collectively enticing both buyers and sellers back into the market. Contracts signed, a true indicator of market demand, experienced a 15% year-over-year decline. However, with 2,266 contracts signed, this represents the smallest annual drop since interest rates surged six quarters ago. Upper Manhattan saw a significant 32% decline in sales, while all other submarkets witnessed declines ranging from 15% to 17%.
This marks the lowest inventory level for a third quarter since 2017. The 3% annual decline is primarily attributed to the limited influx of new properties onto the market, due to sellers' reluctance to list their properties due to low mortgage rates.
Property pricing in Manhattan is gradually adapting to the slower sales market, ongoing supply, and the highest mortgage rates witnessed in over two decades. A significant indicator of a downward pricing trend is the year-over-year decline in the average and median price per square foot, down 3% and 4%. Property price figures are now resembling those seen in 2015, potentially introducing real value to the market, which may stimulate demand in the forthcoming quarters.
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