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.”