The Manhattan residential real estate market experienced persistent fluctuations as buyers and sellers adapted to an environment marred by low but slightly improving inventory,
elevated rates, and heightened price sensitivity.
Buyers are starting to return to Manhattan, as greater acceptance of
elevated mortgage rates and all-cash
financing drove pending sales (signed
contracts) upward, climbing by 9.3% in Q1 compared to Q4 and 1.7% year-
over-year.
An inventory shortage and higher-
than-usual rates compared to the
five-year average continued to
drive trends in Manhattan's
residential real estate market
during the fourth quarter of 2023.
Prices rose to the highest numbers
seen since 2018 both for condos
and co-ops, despite closed sales
falling 10.2% year-over-year. Most
importantly, a 7.6% increase in
contract activity this quarter
highlights positive movement as
we transition into 2024.
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.
The Manhattan real estate market
underwent headwinds driven by
economic uncertainty and
heightened borrowing costs that
tested the resolve of buyers and
sellers. Despite these challenges,
Manhattan remains a highly
sought-after destination,
prompting buyers and sellers to
recalibrate their expectations in
line with current market
conditions.
New York is set for a spring awakening. Contract activity jumped 14.5 percent quarter-over- quarter in Q1 as buyers and sellers increasingly decided to move on with their lives after largely waiting on the sidelines during the second half of 2022, accepting the reality of higher interest rates, sustained economic uncertainty, and ongoing geopolitical challenges.
As your agents, Sapir Team combines expert negotiation and market knowledge with genuine and honest communication in order to confidently guide you through the buying or selling process.