In this episode, expert NYC real estate brokers John Gasdaska and Jonathan Conlon review Corcoran’s Q1 2023 Manhattan Real Estate Market Report and give their analysis.
Here’s the short version:
In Q1 2023, the overall number of contracts signed was significantly below Q1 2022, but the Manhattan real estate market gained some encouraging momentum during the quarter.
Market-wide closings registered 2,500 sales, returning to the pace seen during the first quarters of historically slower years from 2018 – 2020. Q1 2022, on the other hand, had set a fourteen-year record high for first quarter sales, exaggerating the 38% year-over-year decline.
Overall, Q1 2023 reinforced the newfound challenges that face the Manhattan market. A variety of economic factors caused hesitation among buyers. Reacting to this anxiety, many sellers reacted to diminished demand and longer marketing times by lowering prices and deepening negotiability to entice nervous buyers.
But as always, there’s more to the story. Here’s our full Q1 2023 Manhattan Real Estate Market Report Analysis:
Q1 2023 Manhattan Real Estate Market Report Analysis
Contracts Signed and Closed Sales
There were nearly 2,500 closings in First Quarter 2023, the lowest number since Fourth Quarter 2020. Excluding last year’s high, the average first quarter sales figure from historically slower years of 2018 – 2021 was only slightly above this quarter’s 2,500.
Closings were down 38% versus last year when sales reached a fourteen-year first quarter record high. The 13% decline in sales versus Fourth Quarter 2022 is
typical of seasonality.
Sales volume was $4.83 billion, a decline of 41% versus First Quarter 2022. Yet this figure was higher than the first quarters of both 2021 and 2020. The decline in sales coupled with a 4% annual dip in average price contributed to the year-over-year decline in sales volume.
Thankfully, contracts signed are improving in the spring market and we are hopeful we will continue to see more apartments transacting as we head into Q2 2023.
Unsurprisingly, slower sales and an uncertain market outlook caused inventory to increase 3% annually to 6,120 active listings.
The spring market finally began to kick in in March and we expect that uptick in listings to continue into Q2 2023.
Days on Market
Days on market jumped 21% annually to 135 days, which was the highest figure since Second Quarter 2021. The gain was driven by resale co-ops that sold after an average of nearly five months on the market. Resale condo days on market only increased four days relative to last year.
Wrapping Up Our Q1 2023 Manhattan Real Estate Market Report Analysis
The Q1 2023 Manhattan Real Estate Market Report shows that while the market is improving, it is still in a state of transition. With shifting conditions comes opportunity, so if you’re thinking of buying or selling, reach out!
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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.
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.
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