Breaking Down An Average Month | August 2023 Manhattan Real Estate Market Report Analysis

In this episode, expert NYC real estate brokers John Gasdaska and Jonathan Conlon review Corcoran’s August 2023 Manhattan Real Estate Market Report and give their analysis.

Here’s the short version:

In August 2023, 867 contracts were signed, down -5% year-over-year and up +7% month-over-month. Active listings stagnated at 6,226 in August 2023, a 0% change from July 2023 and a -5% decline from August 2022. Meanwhile Days on Market remains at 134, a +28% shift year-to-year and a -1% decline month-to-month.

Though it may appear that the market is cooling, there are significant signs of life in the $5M+ category. Read on to find out why these and other apartments are transacting in a market where so many apartments are sitting on the market with barely a nibble of interest.

As always, there’s more to the story. Here’s our full August 2023 Manhattan Real Estate Market Report Analysis:

August 2023 Manhattan Real Estate Market Report Analysis

Contracts Signed

In August 2023, 867 contracts were signed in Manhattan. The annual decline of -5% was led by -20% fewer condo contracts, while co-op activity increased +8% year-over-year. This month marked the second smallest overall annual decline since April 2022, just before mortgage rates surged.

Properties in the $5M+ category continued to transact at a higher rate, +9% compared to August 2022. This growth was driven by new developments and high-end resales on Billionaire’s Row.

All things considered, the contract activity in Manhattan in August 2023 perfectly mimics August trends in the last ten years. While there is an amount of uncertainty in the marketplace, the numbers don’t lie – our real estate market is holding steady!

Inventory

Inventory in August 2023 remained constant at 6,226 listings, only 5 listings lower than the previous month and a -5% decline year-to-year. Compared to the previous ten Augusts, we actually saw more inventory coming on the market than is typical.

Because the selection of apartments is so limited and interest rates have continued to climb, buyers are much more hesitant to make offers than you may have grown accustomed to in recent years.

If you are selling an apartment in the city this fall, make sure you listen to your agent’s guidance, put in the work to make your apartment stand out, and always engage with offers by sending a counter-offer. Even if the original offer is below what you’d like for the home. You never know how much a buyer may be willing to spend to secure the property unless you ask.

Days on Market

Days on market also remained essentially the same month-to-month, dropping from 136 to 134 in August. This number is +28% higher year to year, which is to be expected as August 2022 continued to see an unusual surge of transaction activity when compared to the ten year trends.

This unusually lengthy period that apartments are spending on the market are indicative of the end of the 2020-2022 boom in our real estate market. We are finally experiencing that return to normal we’ve been anticipating for months. That slowdown is exacerbated by the financial climate we find ourselves in, with interest rates on the rise.

The bottom line is, apartments are still transacting, but the market isn’t popping like popcorn anymore. Buyers and sellers alike need to think strategically and have patience. Even the funkiest apartments are finding their buyers in this market. It just takes a little more time.

If you are in the market to buy or sell a Manhattan home, please reach out. We’d love the opportunity to be your trusted advisors.