Manhattan Market at a Glance:
- 2,100 contracts signed
- 170 average days on market
- 959 homes in inventory
- $1,478 average price per square foot
Q4 | Manhattan Market Report
As we reflect on the Manhattan real estate market's performance in the fourth quarter of 2023, the trends that emerged during the preceding months continue to shape the landscape.
A persistent shortage in inventory and above-average rates have been instrumental in steering the residential real estate market, resulting in noteworthy developments. In this quarter, we observed a surge in prices, reaching levels not seen since 2018, with both condos and co-ops experiencing the upward trajectory. Despite a 10.2% year-over-year decline in closed sales, the 7.6% increase in contract activity signals positive momentum as we embark on the journey into 2024.
The current stagnation in resale inventory remains a pivotal factor constraining the market, while new developments rapidly drive prices upwards. Around 40% of resellers, tied to ultra-low mortgages, are hesitant to provide discounts. With anticipated decreases in interest rates, supported by scheduled Federal Reserve reductions, a potential resurgence in resale transactions looms for 2024, providing buyers with increased access to capital.
Despite the promising outlook for 2024, a stable economic environment is crucial for facilitating transactions. The possibility of a surplus in inventory and declining rates may prompt buyers to act decisively, finalizing purchases that have been deferred.
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