March 2024 Market Overview

March 2024 Market Overview

  • Karp Dagan Team
  • 03/1/24

The peak leverage for buyers appears to be in the past and they should now recalibrate their expectations accordingly. While it's not exactly a seller's market, the current market leans more towards neutrality compared to a few months ago, when buyers held a more advantageous position. It does feel like the Spring selling season has started early and we expect this to continue for months to come.  

Cash Still King: More than two-thirds of home sales in Manhattan last quarter were cash purchases, a record, as high rates on mortgages deterred many.

Luxury Market: Manhattan's luxury market has remained active and is the strongest of all sectors. Last week saw 27 contracts signed for properties above $4 million, continuing a remarkable streak of three consecutive weeks exceeding 25+ deals, a feat unseen since October 2023. This follows the highest weekly total in nearly eight months, with 29 contracts signed just the week before, and the week prior saw 1/3 of luxury properties sold exceeding a staggering $10 million price tag. Condos are leading the charge, outselling their co-op counterparts, with townhouses and condops added to the mix. Last week’s sales were a combined asking price of $237.5 million, translating to an average price tag of $8.8 million or a median price of $7.4 million. While buyers are securing an average 11% discount and sellers are spending a median of 605 days on the market, the sheer volume and value of deals signed point to a red-hot luxury market in Manhattan.

For Sellers: Spring is traditionally the peak selling season in Manhattan. While prices dropped in some segments of the market in 2023, the good news is, the market appears to be recovering. Inventory is currently low, particularly for quality listings, but more listings are expected in the coming months. This presents a good opportunity for sellers to capitalize on increased buyer activity. We're even seeing multiple bids on recently listed properties, a trend absent for much of the latter half of 2023. However, it's crucial to have realistic expectations about pricing. While the market is improving, it's likely only recovering a portion of the previous lost ground, leaving us in a balanced market at best. Despite this, compared to last spring, this upcoming season is shaping up to be one of the best times for sellers to list their homes in recent memory.

For Buyers: It seems like the best time for buyers to get great deals might be behind us. However, buyers still have the advantage of better prices compared to last year. If you’re a buyer and haven't made a move yet, don’t stress, but be prepared for sellers to react differently than you might have a few months ago. Expect more competition from other buyers and less room for negotiation, especially for properties priced at market value. Deals are still out there, mainly for apartments that need work, but there's a sense of urgency creeping in. This trend is likely to continue as we head into the busiest time of the year, Spring. 

Rentals - According to StreetEasy, February rental inventory stood at 28,620, a slight increase from this time last year. Despite this, the median asking rent is $3,571 which is 2% higher than this time last year. Central Park South continues to reign supreme with the highest median asking rent at $10,000/month, followed by Flatiron and Dumbo at $5,892 and $5,800 respectively. Of all the inventory listed on StreetEasy 15% of apartments had price cuts in February, compared to 16% a month ago and 11% last February. 

Compass - #1 Brokerage in Manhattan and Brooklyn: For 2023, Compass achieved the status as the #1 Brokerage in New York City based on closed sales volume and total transactions! In addition, for the third year in a row, Compass was ranked the #1 Brokerage in Manhattan for the number of closed sales transactions and the #1 Brokerage in Brooklyn in both closed sales volume and the number of closed sales transactions!

Please do not hesitate to reach out for your Manhattan and real estate needs in other markets. 

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