Few headlines reported that we entered a buyer's market in Manhattan at the end of Q2 2024. Did that mean homes were selling at record lows? No, although prices softened from Q2 2023, by 1.7% for the median to $1,180,000 and by 3.6% for the average price to $1,997,527
Compared to historical averages, we signed fewer contracts in the last 23 out of 25 months and we're finally seeing inventory rise. However, with 2596 closings, the number of sales had a 45% increase over Q1 while it had a small decrease of 0.4% year over year. The robust volume of sales is indicative of buyers wanting to capitalize on those homes with serious sellers with a real need to sell. Some of those sellers even entertained multiple bids.
18.2% of those closings took place in Midtown East due to value it presents compared to many other areas of Manhattan, including Downtown.
Downtown, which excludes FiDi and Battery Park, the number of sales as well as sales volume decreased by 9.7% and 8.1% respectively over last year, however they both increased compared to Q1 by 46% and 55% respectively. Although sales were strong compared to Q1, the median price fell by 1.5% compared to Q1. Negotiability in this high rate environment played a big role in getting these deals done, even if they were all cash. It's been widely reported that well over 50% of deals are all cash in Manhattan.
While the ultra luxury market always makes headline news, only 18% of sales Downtown were of 3 and 4+ bedroom homes which command top dollar.
With the anticipated rate cut in the fall, we expect more buyers to come out of the sidelines creating more activity, which would be reported in the Q1 2025 report given the time line of contract to close is about 90 days.
The full report on all Manhattan neighborhoods can be found here. If you have any questions, we'd love to hear from you!