Manhattan Real Estate Market Report: Q2 2024
The second quarter of 2024 saw notable shifts in Manhattan’s real estate market, characterized by increased sales activity and nuanced price dynamics across co-op, condo, and luxury segments. This analysis explores key trends, highlighting changes in median sales prices, inventory levels, and market performance. With a focus on both the re-sales and new developments, the report provides a comprehensive view of how these sectors are adapting in the current economic landscape.
Co-Op & Condo Market Overview
In Q2 2024, the Manhattan real estate market saw a resurgence in sales activity, with a 12.2% year-over-year increase in closed sales, reaching 2,609 units. This marks the first annual sales increase in two years. The median sales price slightly decreased by 1.5% to $1,181,679, though it remains the second-highest in two years. Inventory levels rose by 4.2% to 8,044 units, the first increase in five quarters. The months of supply dropped to 9.2 months, indicating a faster market pace compared to the previous year. Notably, the listing discount grew to 11.3%, suggesting greater negotiability.
Median Sales Price Trends
Manhattan’s median sales price showed mixed trends, with slight annual declines. The co-op median sales price increased by 1.8% to $850,000, while the condo median price rose by 3.4% to $1,732,500. These modest increases were accompanied by a surge in co-op sales by 18% and a smaller 5.7% increase in condo sales, reflecting varied demand dynamics across property types.
Luxury Market Analysis
The luxury segment, representing the top 10% of the market, saw a 10.5% decrease in the median sales price to $5,997,500. Despite this decline, luxury inventory surged by 22.4% to 1,593 units, contrasting with the overall market’s 0.5% inventory increase. The market share of new development sales slightly rose to 13.1%, with the median sales price for these properties increasing by 2.2% to $2,043,627.
New Development Trends
The market share of new development sales slightly increased, with a corresponding 15.2% rise in closed sales, reaching 342 units. The median price for new developments rose by 2.2% to $2,043,627, indicating steady demand in this segment. Inventory levels for new developments also increased, supporting the observed rise in sales.
Manhattan Rental Market Analysis
The median rental price remained unchanged year-over-year, tying the highest record for June. The vacancy rate slightly increased by 0.05%, while new lease signings surged by 31.2%, marking the second-highest level for June. The market share of owner-paid (OP) concessions and incentives decreased by 0.9%. Additionally, marketing time was shortened by five days, with the listing discount shrinking by 3.4%, indicating a highly competitive market with increased bidding wars.
Manhattan Rental Matrix
The rental market in Manhattan experienced several noteworthy trends in June 2024. The median rental price was $4,300, stable from the previous year and maintaining the highest June level on record. The average rental price decreased by 6.9% year-over-year to $5,093, influenced by a 15.1% reduction in average apartment size. Rental price per square foot rose by 3.9% to $85.37, marking one of the highest rates recorded. The number of new leases surged by 31.2% to 6,775, despite a 38% increase in listing inventory to 9,832. The vacancy rate remained low at 2.83%. The market saw a significant reduction in days on market, averaging 24 days, and a notable listing discount of -1.4%, indicating a premium above the initial asking prices, driven by a record 24% market share of bidding wars.
Conclusion
The Manhattan real estate market in Q2 2024 demonstrated resilience, with a marked increase in closed sales and varied price movements across different market segments. Despite a slight decline in median sales prices, the rise in inventory and continued prevalence of cash sales indicate a healthy level of market activity. The luxury and new development sectors showed mixed results, underscoring the diverse nature of buyer preferences and market dynamics. As the market continues to adjust, these insights provide a valuable snapshot of current trends and future expectations.
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