Manhattan’s Resilient Real Estate Market: 2% Price Increase Amidst Challenges in 3Q 2023
Manhattan’s real estate market has shown resilience in the third quarter with a 2% price increase year-over-year.
Home prices remained steady for Manhattan’s third quarter even with elevated mortgage rates, low inventory, and a decline in signed contracts across the market, as the Manhattan Real Estate Market Report for 3Q 2023 by Corcoran explains.
According to the report, the median overall price for a Manhattan home was $1.175 million, representing a 2% increase year-over-year but a 2% decrease compared to Q2 2023. This decrease was partly due to fewer transactions under $1 million.
While the number of signed contracts decreased 27% from the previous quarter, to 2,266, and 15% year-over-year, the slump in activity has been easing in recent months. As outlined in the report, this was the sixth consecutive quarter that contracts fell year-over- year, reflecting the shift in sales after mortgage rates sharply increased.
Despite a lower number of contracts, the overall sales volume for Manhattan totaled $6.86 billion in Q3 of 2023, which is still over 4% higher than the ten-year average of $6.708 billion, according to the Corcoran report.
“During the third quarter of 2023, Manhattan continued down the road to normalization. It looks like the current pause on further rate hikes – paired with slightly lower prices and record-high rents – just might be the encouragement buyers and sellers need to dive into this market.
And while sales may be down compared to last year’s strong performance, with 3,400 closings and $6.8B in sales volume, we continue to see positive quarterly improvements. As we look to the end of the year, limited inventory remains a big challenge, but Manhattan’s resilience and enduring appeal is something we’ll always have on our side.”
Read the full Corcoran Market Report for 3Q 2023 here.
View more Luxury Market Reports on LuxuryRealty.com.
Sources:
Manhattan Real Estate Market Report: 3Q 2023 – Corcoran