Manhattan Real Estate Market Report: 2Q 2024

“Manhattan’s second quarter wrapped up on a promising note, with slight increases in both supply and demand compared to last year. As we close out the first half of the year, attractive prices are drawing in buyers. Savvy sellers have adjusted their expectations by offering more value, and buyers are responding enthusiastically.

While it’s too soon to declare a full recovery, these positive trends are encouraging and when rates eventually drop, I expect eager buyers will jump back into the market. For any prospective buyers out there, I wouldn’t wait too long to make your move.”

– Pamela Liebman, Corcoran President & CEO

For the first time since rising mortgage rates upended the market in mid-2022, Manhattan closings and contracts improved on a quarterly and annual basis.

• The number of sales rose about 1% annually and 34% quarterly to about 3,150 closings.
• Signed contracts at roughly 3,200 deals expanded 3% from last year and 13% versus last quarter.
• Although Second Quarter 2024’s annual gains weren’t huge, both quarterly increases were more robust than a typical second quarter, and 2Q24’s sales figures suggest demand may have reached an inflection point.

After nearly two years of falling inventory, listed inventory in Manhattan is slowly climbing, too.

• Active listings rose for the second consecutive quarter, up 3% annually to 7,539 units, just above the ten-year average.
• While last quarter’s increase in inventory was due to fewer sales, this quarter’s shift was due to a rise in new listings being brought to market.
• Although many potential sellers remain reluctant, moderating mortgage rates helped drive new listings in Manhattan up 12% annually, the first meaningful replenishment of new listings since early 2022.
• Notably, the growth in Manhattan inventory is contained to the resale market as new development launches remain relatively limited.

Manhattan prices fell across the board for a second consecutive quarter, which hasn’t happened in seven years.

• Despite steady deal activity and tight supply in key areas, mortgage rates remain elevated, inventory is languishing, and buyers remain highly sensitive to value, all in keeping with a buyers’ market.
• As a result, this quarter’s median price declined YOY for the seventh time in eight quarters, down 2% to $1.181M, its lowest second-quarter level since 2018, excluding the 2020 market pause.
• More significantly, average price per square foot fell annually by double digits for a second straight quarter, down 10% to $1,671, similar to figures last consistently seen in 2015.