In this episode, expert NYC real estate brokers John Gasdaska and Jonathan Conlon review Corcoran’s January 2023 Manhattan Real Estate Market Report and give their analysis.
Here’s the short version of our analysis:
Manhattan contract activity took a big hit in January 2023, declining 33% year-over-year and hitting its lowest level since July 2020. The nearly 670 deals reported were also 18% below the five-year January average. However, contract activity in January 2018 and 2019 was similar to what was seen this year.
The most significant annual declines in sales were seen in high-end units asking between $3M to $5M, which declined by nearly 50%. Sales under $1M were also down 28% year-over-year. Lower inventory exacerbated the drop in demand in the Financial District/Battery Park City area, where sales were down the most compared to the record pace seen in early 2022.
Days on Market for properties rose for the third consecutive month and averaged 158 days, marking the highest figure in nearly two years.
But as always, there’s more to the story. Here’s our January 2023 Manhattan Real Estate Market Report Analysis:
January 2023 Manhattan Real Estate Market Report Analysis
Contracts Signed and Closed Sales
During January 2023, Manhattan saw a total of 669 contracts signed, which represented a 33% decline compared to the same period in the previous year and a 10% decline compared to the previous month.
All price points and units types were impacted. Units priced under $1M fared better than those in higher price points. Upper Manhattan also fared better than the rest of the submarkets.
Inventory
Manhattan inventory increased by 9% compared to January 2022, resulting in just over 6,000 active listings. However, January 2022 had the second-lowest figure in almost four years.
Condo inventory was 8% lower than the five-year January average, while co-op inventory fell below 3,000 listings for the fourth time in the past three years.
Units can only transact if they are on the market, so until we see more inventory available to buyers, these trends will likely continue.
Days on Market
The sharp increase in days on market during the month of January is likely due to apartments that had been listed since Fall (or earlier) finally transacting. We don’t usually see a lot of inventory listed in January, so the contracts that were signed during the month were almost certainly for apartments that had been available for quite a while.
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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.
The January 2023 Manhattan Real Estate Market Report clearly shows the market is in a state of transition, with shifting conditions and uncertainty – which we always say breeds opportunity.
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!
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