Contract activity (or the number of signed contracts) is up 3.8% from a year ago and down 1.5% from the monthly historical average. The Median Sales Price for a Manhattan apartment is $1.14M, which is 1.5% less than the same period last year.The supply, or the number of units on the market, is down 2.6% compared to 2023. Meanwhile, the number of pending sales, or the number of units currently in contract, is 8% higher than a year ago.
The Market Pulse, or pending-to-active ratio, stands at 0.43, confirming a neutral market.

(Currently, above 0.5 is considered favorable to the seller, and below 0.3 is favorable to the buyer).

A Closer Look

In August, we experienced a tightening of supply and steady demand, suggesting that sellers may gain more leverage as we move into the fall. Although the typical summer slowdown persisted, it was less dramatic than in previous years, indicating more buyers are active. Lower mortgage rates could fuel further activity, but economic uncertainty and the upcoming election might temper any significant surge in demand.

Advice for Sellers 

If you plan to list in the fall, aim for mid-September, as fall is a shorter, more intense selling season than spring. Peak activity lasts until Thanksgiving. Pricing should be realistic, as overpricing can lead to missed opportunities. The first 30 days are crucial, so adjust quickly to capitalize on the active market before it slows down.

Advice for Buyers 

While summer offered some deals, the market is now more challenging, with less room for negotiation. Sellers are pulling listings or turning to rentals, making it harder to find good opportunities. Act quickly rather than holding out for more if you find a good deal. The market has underperformed, but buyer interest may rise as 2025 approaches.

Luxury Segment

Last week in Manhattan, 23 contracts were signed for units asking $4 million and up, 6 fewer than the previous week. In the week before, the one post-Labor Day, buyers scooped up 29 homes asking $4 million or more, marking the highest number of inked deals after the holiday since Olshan Realty began tracking the data in 2006.

Rental market

The median rent dropped 3.5% year over year to $4,245 and declined 1.3% compared to July.

The number of new lease signings soared 63.6%, marking the highest August total on record for the fifth consecutive year of growth. Meanwhile, listing inventory surged 96.3% yearly to the second-highest August total, surpassing the gains in new lease signings.

(data source: urbandigs.com, olshan.com, millersamuel.com, therealdeal.com, picture: Nelson Ndongala)