“The Manhattan market is finally showing signs of a comeback, with demand indicators improving for the first time since 2022. We saw a rise in both closings and signed contracts, and deals are moving faster — marketing times are the quickest they’ve been in over two years. It’s clear buyers are re-engaging, but value remains top of mind with price per square foot continuing to trend down for the sixth straight quarter. With demand outpacing new listings, we’re keeping a close eye on the fall season. If the Fed continues to cut rates – bringing more supply back into the market – prices will continue to rise. For any prospective buyers out there, I wouldn’t wait too long to make your move.”

– Pamela Liebman, Corcoran President & CEO

The Manhattan market is making progress and for the first time since 2022, demand’s key indicators all improved in Third Quarter 2024. Compared to a year ago, closings and signed contracts rose as inventory held steady.

• The number of sales rose 2% annually to about 3,275 closings and neared its five-year average.
• Sales volume, boosted by two Billionaire’s Row closings over $100M, climbed 3% YOY to a five-quarter high of $6.52 billion.
• Signed contracts grew at their fastest annual pace since 2021, rising 8% to about 2,570 deals. In turn, marketing times cooled versus 2023 to 108 days, the fastest deals have been inked in over two years. Combined with the last quarter’s gains in activity, Q3’s results suggest Manhattan demand is recovering.

Although sales firmed up over the last three months, pricing continues to reflect how important value is to today’s buyers.

• In Q3, average and median price per square foot fell YOY, down 6% to $1,734 and 9% to $1,271, respectively.
• This was the sixth straight quarter that Manhattan price per square foot declined on a yearly basis, which hasn’t happened since the mid-1990s.
• Nevertheless, median and average sale price statistics actually rose versus a year ago. This was not due to price appreciation; rather, closings shifted from lower-cost areas to more central locations where prices have also adjusted in favor of buyers.

Demand growth continues to outpace new listings: about 3,450 residences hit the market this quarter, an uptick from 2023 but 20% fewer than an average third quarter.

• Meanwhile, contracts were level with their summer average, preventing an increase in supply.
• Given that sales and inventory typically rise together alongside buyer/seller confidence during market rebounds, we will be watching to see if new listings to pick up this fall, especially with the Fed’s rate cut now behind us.