August Newsletter

Last month, Manhattan's real estate market showed varied trends across property segments, each reflecting unique dynamics in buyer activity and pricing shifts.

New Development The new development market saw a 23.38% decrease in contracts signed, totaling 118. However, the average price per square foot (PPSF) increased by 5.61% to $2,247, and the average price rose by 12.67% to $3.47 million, indicating higher prices but fewer transactions.

Luxury ($4M+) The luxury market experienced a significant drop in contracts signed, down 25.42% to 88. Conversely, the average PPSF increased by 8.83% to $2,684, and the average price climbed 15.83% to $8.44 million. Continuing the trend of fewer transactions associated with slower months of Summer, but showing signs of resilience of NY market in the luxury sector. 

Resale Condo Resale condos saw a slight decrease in contracts signed by 2.87%, with 237 transactions. The average PPSF fell by 1.33% to $1,610, and the average price decreased by 5.90% to $2.31 million. 

Resale Co-op The resale co-op market recorded a 15.71% decline in contracts signed, amounting to 397. The average PPSF dipped by 1.68% to $1,095, and the average price decreased by 10.66% to $1.4 million. The total dollar volume dropped significantly by 24.70%, totaling $558 million, highlighting a noticeable decline in both price and transaction volume.

Summary While prices in new developments and the luxury market were increased in July, the number of transactions and total dollar volumes have declined, indicating a possible shift towards more selective, higher-priced buys. Resale condos and co-ops are showing slight declines in both prices and activities, suggesting a softer market overall.

Important notes from the field 1) The trends are in line with typical summer activity as buyers are focused on vacations, travel and summer breaks with the kids and we are likely to see a similar picture in August and 2) the numbers only represent one month of activity. 

Looking at the bigger picture and what lies ahead, one thing is certain, while the buyers have benefited from softer market and more negotiability in the first half of 2024, the tide is about to turn. FED is showing signs of lowering the rates in their September meeting and the mortgage rates hitting their lowest point since the beginning of the year. These two factors alone are giving the buyers in the "wait and see" category and those addicted to a lower rate more reasons to enter the market creating more demand while supply still remains historically very low.

Enjoy the last few weeks of Summer and as always, don't be shy to drop me a line with any questions!

Daniel
 

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