In this episode, expert NYC real estate brokers John Gasdaska and Jonathan Conlon review Corcoran’s May 2023 Manhattan Real Estate Market Report and give their analysis.
Here’s the short version:
In May 2023, the number of contracts signed rose 24% to 1,199. The annual market-wide decline that has been trending for months shrunk in May, indicating that the market may be revving back up!
Inventory numbers remained high, at 7,439. That’s just over 10% higher than the ten year average for the month of May. If you are searching for a new home, you have more options than you’ve had in months.
Buyers should be decisive as this market which has allowed them to take their time and be picky may be replaced with a much more competitive market soon. Sellers can use this to their advantage with asking prices that inspire competition.
But as always, there’s more to the story. Here’s our full May 2023 Manhattan Real Estate Market Report Analysis:
May 2023 Manhattan Real Estate Market Report Analysis
Contracts Signed and Closed Sales
1,199 contracts were signed in Manhattan in May 2023. 24% more contracts were signed in May 2023 than in April 2023. However, there was a decline of 10% in contracts signed year-over-year. But even this decrease is markedly less than in previous months of 2023!
Contracts signed on apartments over $5M+ were 98. These numbers rose 42% month-to-month and 38% year-over-year. May 2023 was the best month for this category since March 2022.
When compared to the number of contracts signed in May over the last 10 years, May 2023 is 0.6% above the average. Additionally, the market-wide annual decline we’ve been experiencing was the smallest in May 2023 that we’ve seen in the past year.
Inventory in May 2023 reached 7,439 listings. This is an increase of 3% month over month and 2% year over year, and the second highest inventory total since June 2021. Meanwhile, inventory of apartments over $5M+ increased 13% month over month and 4% year over year.
Manhattan’s apartment inventory is 10.49% higher than the average over the last ten years, which is around 6,700. As we’ve seen a trend of choosiness amongst both our buyers and prospective buyers touring our listings, we are hopeful that these increases in inventory will help buyers be more decisive.
Days on Market & Negotiability Factor
Days on market increased rather dramatically to 131 in May 2023. This is an increase of 8% month to month and 30% year to year. Apartments over $5M+ stayed on market 29% longer than April 2023, and 14% longer than May 2022.
With choosy buyers and an expanding selection of apartments on the market, it’s no surprise that most listings are taking longer to close. But remember, we are comparing today’s number to that of last year, when apartments were still trading like hotcakes. For perspective, May 2023’s days on market total is actually 12.79% lower than the ten year average.
Negotiability factor is also known as the discount off the last asking price. In May 2023 that percentage was -5.6%, which was 4% deeper than last year. While that figure is slightly skewed by several apartments over $10M that sold for more than 10% off of the last asking price, 71% of sales were below their last asking price in May
Concluding Our May 2023 Manhattan Real Estate Market Report Analysis
The May 2023 Manhattan Real Estate Market Report reveals an upswing could be coming after months of downturn. The most important takeaways we want to leave you with are these two things:
- Your apartment can sell – and do so quickly – if you follow your broker’s pricing advice.
- Now is an excellent time to buy a piece of Manhattan real estate with inventory increasing and negotiability factor so low.
If you are in the market to buy or sell a Manhattan home, please reach out. We’d love the opportunity to securely guide you through this transitional market.
Looking for more resources? Check out our dedicated Buyer and Seller info pages!
Why We Host This Podcast:
We have been in this business long enough to know that knowledge is power. That’s why we conduct an in-depth analysis of the Manhattan real estate market every month, quarter, and year and provide an easy-to-understand synopsis of the full report in several different formats – all so you can stay informed.
Our team of experienced real estate professionals closely monitors market trends and provides our clients with the latest and most relevant information available. With this information, our clients are able to make informed decisions about buying and selling properties in Manhattan, which helps them stay ahead of the curve and make the most of their real estate investments.
Understanding the trends and changes in the market can help you make informed decisions. You gain insights into supply and demand, pricing, and market conditions that can influence the value of your property. Just by being aware of market trends and conditions, you’re better off than most other buyers and sellers, and you can make strategic moves that can lead to a successful real estate transaction.
If you’re considering buying or selling a Manhattan property, now is the time to take action. Our team of expert real estate agents and brokers can help guide you through this market, leveraging our extensive knowledge and experience to help you make informed decisions.
So, why wait? Reach out to us today and let us help you achieve your real estate goals!
Have a question you’d like us to discuss? Just reach out.