Manhattan Real Estate Market: Q4 2024 Report
As 2024 comes to a close, the Manhattan real estate market has shown resilience and strong activity despite persistent inventory constraints and elevated mortgage rates. Whether you're looking to buy, sell, or invest, understanding the latest trends can help you make informed decisions. Here’s a detailed breakdown of the Q4 2024 market report and what it means for buyers and sellers.
Market Overview: A Strong Finish to 2024
The Manhattan residential market ended the year on a high note, with sales rising 10.6% year-over-year compared to Q4 2023. While mortgage rates remained a factor, buyers re-entered the market due to equity gains and greater acceptance of current conditions.
- Median Sale Price: $2.07M (+2.7% YoY)
- Average Sale Price: $2.07M (+8.5% from Q3 2024)
- Average Price Per Sq Ft: $1,475 (+1.7% YoY)
- Inventory Decline: -14.3% YoY
- Contracts Signed: +6% YoY
With low inventory and buyer confidence growing into 2025, these factors indicate that pricing pressure will likely continue.
Condo Market: Leading the Growth
Condo sales were the driving force behind Q4’s market performance, surging 21.5% year-over-year. High demand for turnkey properties with modern amenities fueled this growth.
- Average Condo Price: $2.95M, the highest since 2018.
- Contracts Signed: +35.9% YoY
- Average Price Per Sq Ft: $1,721 (-1.0% YoY)
- Luxury Sector ($20M+ Sales): +58.3% YoY
Key Takeaways:
- Buyers are prioritizing move-in-ready condos.
- Luxury sales are booming, with wealthy buyers seeking high-end properties.
- Inventory challenges persist, keeping competition strong.
Co-op Market: Steady but Competitive
While co-op sales increased slightly (+2.8% YoY), pricing saw a minor decline.
- Average Co-op Price: $1.32M (-1.2% YoY)
- Contracts Signed: -14.1% YoY
- Median Sale Price: $799,500 (-5.9% YoY)
Key Takeaways:
- Co-ops are still a great value play in Manhattan.
- Buyers are being more selective, with discounts averaging 7%.
- Competition for well-priced units remains high.
Luxury Market: A Surge in High-End Sales
The ultra-luxury sector ($20M+) experienced a 58.3% increase in sales, driven by high-net-worth buyers securing trophy properties.
- Luxury Market ($5M+ Sales): 10.4% of all contracts signed in Q4.
- Upper-end properties are moving, despite economic uncertainty.
- Lower mortgage rate expectations have fueled high-end transactions.
Key Takeaways:
- The luxury sector is one of the strongest in years.
- Wealthy buyers continue to see Manhattan real estate as a safe asset.
- Expect continued high activity in 2025, especially post-election.
Manhattan Inventory: A Persistent Challenge
One of the biggest hurdles in the Manhattan market remains low inventory, which fell 14.3% year-over-year.
- New listings were down across most categories, except for high-end condos.
- The lack of supply is keeping competition high, making pricing more resilient.
- Months of supply remain tight, indicating that demand is outpacing new inventory.
What This Means for 2025:
- Sellers: You have leverage in negotiations if pricing aligns with demand.
- Buyers: Expect competition, particularly in turnkey condos and luxury properties.
- Investors: With prices rising steadily, long-term Manhattan investments continue to look promising.
Submarket Breakdown: Where is the Demand?
Certain neighborhoods stood out in Q4 2024:
- Downtown Manhattan (30% of sales): Luxury condos and high-end co-ops dominated.
- Upper East Side (20%): Strong sales activity, particularly in the $1M-$3M price range.
- Midtown East: Highest contract growth (+13%), indicating rising demand.
- FiDi/Battery Park City: Showed price appreciation, though volume remained lower.
Final Thoughts: What to Expect in Early 2025
Looking ahead, Manhattan’s market is positioned for continued strength in 2025.
- Buyer confidence is improving, with signed contracts up 6% YoY.
- Inventory remains tight, keeping upward pressure on prices.
- Interest in the luxury market is expected to stay strong, especially from international buyers.
- Post-election stabilization could drive even more sales activity.
For those looking to buy or sell in 2025, navigating this competitive landscape requires expert guidance. If you’re considering a move, contact The Baruh Team today for a personalized market strategy.