2Q23 Manhattan Market Report | Circumspect

Year-over-year decline in closed sales volume, signed contracts and average price is statistically real but qualitatively deceptive due to last year’s record breaking volume. While all of these metrics have actually increased relative to 1Q23, still there is a sense of buyer hesitancy due to higher cost of financing and economic uncertainty. The mindset of today’s mainstream purchaser seems to be one of necessity over luxury.

At the true luxury price points ($5-10M) there were 175 contracts signed, an increase of 17.4% from 2Q22: June had the second highest number of signed contracts than any June since 2006. While 58.2% of purchases were all cash in the $500K-1M range, 75.4% of purchases above $5M were cash. It’s important to note that “cash” purchasers are still likely at least partially interest-rate sensitive due to asset-collateralized financing.

New York City inventory is up, finally landing us in buyer market territory (9.2 months of supply). Submarkets still vary widely from 3.3 months (Upper Manhattan studio co-ops) and 32 months (14th-34th Streets loft condos), providing leverage for both sellers of the former and buyers of the latter.

• Total sales volume: $5.2B

• Average sales price: $2.04M

• Average condo sales price: $2.83M

• Average co-op sales price: $1.37M

Contact us to find out whether your needs and goals align with current market leverage, why co-ops cost on average 51.7% less than condos, or for additional insights on the Manhattan residential real estate market.

We ❤ NY.

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