1Q23 Manhattan Market Report | Cutting Through the Noise

It’s a herculean effort to decipher the news these days. The year started off optimistically, with mortgage rates coming off their highs, inflation down, and the stock market stabilizing. Multiple showings/ signed contracts on previously dormant properties indicated buyers getting off the sidelines. Then two failed banks and another shored up drove systemic risk chatter (an undisputed reality influencer). Median home prices across the country dropped for the first time in over a decade: perhaps a bellwether for Fed loosening–? The luxury market impressed: 

• Multiple consecutive weeks of 25+ signed contracts in the $4M+ market

• Bidding wars in 11.3% of $4M+ deals (compared to 5.3% across all deals)

• The ultra-luxury $20M+ sector had a 200% increase in year-over-year sales

With still low residential supply across the country, a repeat of 2008 seems unlikely (unless, of course, commercial oversupply/ under-demand takes its place). Virtually all Manhattan co-op and condo sectors are in seller’s territory, with particular opportunity in Upper East Side studio condos (2.8 months). Conversely, 3BD+ condos give buyers leverage with 10.3 months of supply. International buyers continue returning as the dollar retreats against the Euro and Pound. 

For our 18 years one thing has remained constant: the importance of strategy. Expert presentation, comprehensive exposure, and intentional pricing maximize value by unearthing the non-financial value of real estate. If you need advice on selling or buying real estate in New York City or anywhere across the world, we have a global network of real estate partners: reach out to us with questions. 

Sources: COMPASS, Brown Harris Stevens, Douglas Elliman, CB Warburg, Corcoran Market Reports