Yahoo Finance New York City’s Real Estate Market Heats Up as Inventory Grows and Sellers Slash Prices
Showing promising signs for an uptick, the Manhattan real estate market is entering its buyers era.
The city is currently experiencing a nascent shift as its inventory grows and prices plummet; buyers are taking advantage. According to data from Douglas Elliman and Miller Samuel, the average residential real estate sales price in New York City dropped to just over $2 million in Q2, a 3-percent downward shift that’s still 5.5 times the national average. At the same time, the median price dipped two percent to $1.2 million, while sale prices for luxury apartments declined for the first time in more than a year.
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“Home sales have slowed throughout the U.S., but in most markets, that’s primarily due to a lack of inventory and rising prices. Here in Manhattan, however, that has not been the case,” writes Bess Freddman, CEO of Brown Harris Stevens, in the firm’s 2024 apartment market report.
Closings and contracts of sale across the overall Manhattan market have improved both on a quarterly and annual basis for the first time since mid-2022, according to a Corcoran report. Meanwhile, the number of sales saw a 34 percent increase quarterly, while signed contracts grew by 13 percent compared to the last quarter.
“Manhattan’s second quarter wrapped up on a promising note, with slight increases in both supply and demand compared to last year,” Pamela Liebman, Corcoran president and CEO, said in the report. “As we close out the first half of the year, attractive prices are drawing in buyers. Savvy sellers have adjusted their expectations by offering more value, and buyers are responding enthusiastically.”
RELATED: Luxury Real Estate Prices Hit a Record High in the First Quarter
After two years of falling inventory, Manhattan is now dealing with a 9.8-month surplus of apartments for sale. Meaning, it would take almost 10 months to sell every unit languishing on the market without any new listing. “Any number over six months tells us there is too much supply, and we are in a buyer’s market,” Freddman added.
The luxury real estate market had an even busier second quarter. The high-end sector recorded a significant increase in signed contracts for homes in the $10 million and $20 million-plus price ranges—a 32.4 percent and 8.3 percent climb year-over-year, according to Compass’s Q2 report. However, there were 10.3 fewer $20 million-plus homes on the market than there were at this time last year.
“With an upcoming election on the horizon, it’s typical for some to pause on purchases until the political landscape becomes clearer,” Compass said in its report. “Nevertheless, New York remains a coveted destination, perpetually attracting interest and maintaining its status.”
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