Manhattan Real Estate Market Report: Q1 2024
The real estate landscape in Manhattan continues to evolve, reflecting both ongoing economic shifts and specific market dynamics. This analysis delves into the performance of both the residential sales and rental markets in Manhattan for the first quarter of 2024. It highlights key trends in pricing, inventory levels, and market activity, providing a comprehensive overview of how these sectors are navigating the current economic environment.
Co-op and Condo Market Trends
The Manhattan co-op and condo market showed a mix of trends in the first quarter of 2024. Median sales prices for co-ops increased slightly by 2%, while condo prices saw a modest decline of 0.8% year-over-year. The overall median sales price in the market experienced a decrease of 2.4%.
The number of closed sales fell by 11.3%, dropping below two thousand for the first time in three years. Inventory decreased slightly by 1.6%, continuing a trend of reduced availability. The months of supply, indicating how long it would take to sell all inventory at the current sales rate, rose to 10.4 months, showing a slowdown in the market pace.
Luxury Market Dynamics
The luxury segment of the market, representing the top 10% of sales, saw an increase in the median sales price by 2.7% from the previous year to $5,800,000. This sector also experienced a rise in inventory by 9% year-over-year, marking the first increase in four quarters. The entry threshold for luxury properties decreased to $3,675,000, reflecting a 7.2% decline from the prior year.
New Developments
New development sales showed significant growth with a median sales price surge of 31.3% year-over-year to $2,100,000. Despite this increase in price, the number of new development sales fell by 4%, constrained by a 4.9% drop in listing inventory. This segment represented 9.7% of the total market share, indicating robust interest but limited availability.
General Rental Trends
The median rental price in Manhattan slightly decreased by 1.8% year-over-year to $4,100, still 14.2% above pre-pandemic levels. Despite a drop in the average rental price by 4.5% to $4,886, the market remained competitive with a significant number of new leases signed. The inventory of available rentals increased by 20% year-over-year, leading to a slight decrease in the vacancy rate to 2.42%.
Size-specific Rental Trends
Studio apartments saw a median rental price decrease of 2.8% to $3,100, while one-bedroom units experienced a 3.5% decline to $4,150. Two-bedroom units had a median rental price of $5,300, down 6.7%. Three-bedroom units maintained a steadier market with a median rental price decrease of just 0.4% to $6,528.
Doorman buildings saw a 4.6% increase in median rent, contrasting with non-doorman buildings, where rents remained stable year-over-year. The loft segment marked an impressive growth, with the median rental price rising by 8.8% to $7,832. In contrast, existing buildings saw a decrease in median rental price by 2.4% to $4,000.
Conclusion
The first quarter of 2024 presented a complex picture for Manhattan’s real estate, with the sales market experiencing a slight downturn in activity and prices, while the rental sector showed resilience amidst fluctuations. Notably, the luxury segment and new developments in sales demonstrated strength in prices despite broader market challenges. This nuanced view underscores the diverse factors at play in Manhattan’s real estate market, suggesting a cautious outlook as both buyers and renters navigate these changing conditions.
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