Manhattan is 'buyer's market' as real estate prices fall, inventory rises
What caused Manhattan home prices to decline?
Manhattan home prices declined due to rising inventory of apartments for sale, which are taking longer to sell3. This has led to a buyer's market, with more than 8,000 apartments currently for sale in Manhattan, higher than the 10-year average of about 7,000. Both buyers and sellers are capitulating to a higher interest rate environment, narrowing the gap between their expectations and resulting in more deals closing.
How long is Manhattan's current apartment supply expected to last?
Manhattan's current apartment supply is expected to last for 9.8 months, based on the number of apartments for sale and the current sales pace. This indicates a buyer's market, as more than 6 months' supply typically suggests an oversupply of available apartments.
What was the percentage drop in Manhattan's average real estate sales price?
The average real estate sales price in Manhattan dropped by 3% to just over $2 million in the second quarter of 2024, according to a report from Douglas Elliman and Miller Samuel1. This decrease was attributed to rising inventory of apartments for sale, which are also taking longer to sell.