“2023 was challenging for the Manhattan market but we ended the year with reassuring signs of stabilization. In the fourth quarter, sales and inventory moderated minimally versus 2022, and even improved for parts of the market, while inflation cooled without a major downturn and mortgage rates began to decrease.
As we kick off 2024, with rates expected to fall even further and prices at an eight-year low, we could see this combination really start to unlock pent-up demand. No matter what the year ahead has in store, I will always bet on the appeal and resilience of the Manhattan market.”
– Pamela Liebman, Corcoran President & CEO
Manhattan prices are now comparable to levels seen in 2015 and 2016, with pricing in the fourth quarter adjusting to weaker demand and buyers’ lower purchasing power.
- Average and median price per square foot fell year-over-year for the second consecutive quarter — down 5% and 9% to $1,785 and $1,305, respectively.
- Nevertheless, absolute median and average sale price statistics rose minimally versus a year ago. This was not due to price appreciation; rather, closings shifted to larger units, where buyers are more likely to pay all-cash.
Sales fell annually for the fifth straight quarter in Fourth Quarter 2023, but less so than earlier this year.
- Market-wide, closings fell 3% annually (and 13% QoQ) to about 2,800 sales and $5.47 billion in volume.
- Resale co-ops Manhattan’s, largest product type, saw sales rise 2% YOY — the first annual increase since mid-2022.
- Signed contracts fell 3% annually to about 2,300 deals, but many weeks in Q4 2023 were stronger than 2022.
New listings hit a four-year low this fall as sellers, many locked into low mortgage rates, remained hesitant to list.
- Listed inventory fell year-over-year for the sixth time in two years this quarter. As of mid-December, 6,385 units were actively listed in Manhattan — down 2% annually.
- As seen throughout 2023, a diminished number of new listings and few new development launches caused the decline. New developments with about 100 units launched for sales, the slowest fall for launches in 15 years. Finally, some notable increases in demand cut into supply, such as the increase in co-op sales and a small uptick in $1M to $2M closings.
Despite lower supply, concerns around the state of the market continued to hamper buyer urgency, with days on market up 6% annually. But well-priced properties still sold quickly.
- One in three contracts signed this quarter did so in 60 days or less, up from one in five last year.