Manhattan maintained its status as a coveted, global city in the third quarter of 2023. There were 2,788 closed sales, an 11.3% increase from last quarter, but a 23.9% decline from the elevated activity in 2022 Economic conditions have pushed buyers and sellers to adjust and align with overall market expectations, though somewhat reluctantly.
Would-be sellers who bought from 2020-2022 picked up an all-time low interest rate, which for many, heavily weighs their purchase as an investment, traditionally a secondary factor for the typical buyer. With rates now significantly higher, many are adopting a "wait and see" approach instead of listing, leading to a surplus of inventory that is more expensive than usual, but not necessarily deserving of that price. Because of this, time on market has climbed, and sellers are starting to adjust prices more willingly.
Moving into the final quarter of the year, interest rates will be what dictates future performance of the overall real estate market. If they continue to climb, many buyers in the middle segment of the market will forego purchasing, while declining rates will spur activity. Steady rates, while high, will allow both sides to acclimate to economic conditions and evaluate if a purchase or sale makes sense.
Buyers have shown that new development and luxury properties are still in demand, 20 million plus signed contracts surged 300 percent, year over year, regardless of the economy, indicating Manhattan still holds its position as one of the most sought after residential markets with a worldwide audience.
With mortgage rates at their highest in the last two decades, and limited inventory, buyers were selective and cautious with their purchases.
Average Days on Market:
Closed Condos Sales compared to Q3 2022
Closed Coops Sales compared to Q3 2022
Inventory compared to Q3 2022
You can download the full report here.
The Manhattan market is struggling. Our experience has been that while there is limited inventory, there is also limited demand. High mortgage rates are fueling both supply and demand challenges. Buyers who are ready to purchase demand steeper discounts than sellers are willing to accept, therefore creating a stalled market with limited contracts being signed.
The Stacey Froelich Team is representing many well priced properties at all price points. We are working diligently to find the right buyer for these incredible homes. We will continue to keep you updated on the Manhattan market. The market is hyper local, please reach out for more information about how this data affects the property you own or the property you want to purchase.