Manhattan homebuyers are starting to favor mortgages over cash

Move over cash buyers. A higher percentage of house hunters are using mortgages to fund purchases in Manhattan’s market, driving sales up for a second straight quarter. 

Closings of co-ops and condos climbed 6.7% in the three months through September compared with the previous quarter. The percentage of those sales that were done in cash fell to the lowest share in nearly two years as mortgage rates eased ahead of the Federal Reserve’s rate cut in September.

In September, new signed contracts to buy Manhattan condos surged nearly 75% from the same month a year earlier, while contracts on Brooklyn condos rose 12%. Contracts for Manhattan co-ops priced between $500,000 and just under $1 million increased 43% in September from the same period a year earlier, according to the Miller Samuel and Douglas Elliman report. That spike is the largest annual increase in three years, according to Miller. “The increase in sub-$1 million contracts is indicative of first-time buyers being sucked back in,” Miller said. You can read more here. 

We are seeing positive signs in all segments of the market. If you have any real estate related questions, our team is here to help!