In this episode, expert NYC real estate brokers John Gasdaska and Jonathan Conlon review Corcoran’s Q4 2023 Manhattan Real Estate Market Report and give their analysis.
Here’s the short version:
In Q4 2023, 2,297 contracts were signed in Manhattan, -3% both year over year quarter over quarter. Inventory decreased in Q4 as well, with 6,385 active listings representing a -2% drop year over year and a -1% drop quarter over quarter. Days on Market rose slightly to 118 days in Q4 2023, a +6% change year over year and +9% increase quarter over quarter.
2023 was a tough year for Manhattan’s real estate market – but we have a lot of hope for 2024. Interest rates are forecasted to come down, inflation is cooling, and we’re starting to see more movement – even on listings that weren’t getting much traffic before.
As always, there’s more to the story. Here’s our full Q4 2023 Manhattan Real Estate Market Report Analysis:
Q4 2023 Manhattan Real Estate Market Report Analysis
2,297 contracts were signed in Manhattan in Q4 2023, a decrease of -3% both year over year and quarter over quarter. We don’t typically see a decrease in contracts signed between Q3 and Q4, so this year’s numbers are even a little more depressed than usual. The good news is this was the smallest year over year decline since Q2 2022 – which is when interest rates started climbing above 5%. There were even many weeks in Q4 2023 that were stronger than their equivalents in 2022.
Q4 2023 ended with 6,385 active listings, which represents a -2% drop year over year and a -1% drop quarter over quarter. We usually see an increase between Q3-Q4 of about 2%, so while these numbers aren’t wildly different from existing trends, it’s still worth noting the divergence in what we were expecting to see.
This was the sixth time in eight quarters that active listings fell, limited by fewer new listings and new development launches than normal. It was also the second lowest fourth quarter for listed inventory since 2017.
But not all categories were down – there were small upticks seen from $500K-$1M and $2M-$3M. Inventory also rose 12% in Midtown due to a build-up of listings under $1M.
We’re still seeing a lot of listings that need renovations, so sellers that enjoy updated apartments in stellar locations are extremely well positioned in this market, as are buyers who aren’t afraid of renovations.
Days on Market
Days on Market rose to 118 days in Q4 2023. That represents a +6% change year over year and +9% increase quarter over quarter. Our interpretation is that buyers remain hesitant about the state of the market, largely due to interest rates and lack of renovated inventory.
So how can we be optimistic if all three of the statistics we track are moving in the wrong direction? Well, it’s because what we’re seeing out in the field is starting to change, and rather quickly. We put together several deals over the holidays at the end of 2023, which is very uncommon, and that gives us a lot of hope for 2024. If you are considering buying or selling in 2024, please reach out. We’d love the opportunity to be your trusted advisors to help you navigate through this unique market.
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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.
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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