Contract activity, reflected in the number of signed contracts, has seen a notable 21% increase compared to this time last year. However, it has dipped slightly, by 1.7%, when measured against the monthly historical average. In terms of pricing, the median sales price for a Manhattan apartment remains steady at $1.14 million, mirroring last year’s figures. The market has tightened a bit on the supply side, with the number of available units dropping by 3.7% compared to 2023. Despite this, the market is still showing signs of activity, as the number of pending sales—those currently in contract—is up by 6% year over year. The Market Pulse, which tracks the ratio of pending to active listings, currently sits at *0.39, suggesting the market is in a balanced, neutral state.

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

Luxury Segment

Last week in Manhattan, 28 contracts were signed for units asking $4 million and up, 2 fewer than the previous week. Thirteen of the 28 properties sold, or 46%, were priced at $10 million and above, marking the highest weekly total of high-end property sales since December 20-26, 2021, when the same number of deals was recorded.

Rental market

The median rent dropped 3.4% yearly to $4,200 and declined 1% compared to August. New lease signings surged 40.1% year over year, reaching 6,171—marking the sixth straight annual rise as, at the same time, listing inventory increased for the 13th consecutive month, up 10.4% to 10,033.

A Closer Look

New York apartment rents dropped, marking a fourth decline in five months, partly due to lower mortgage rates. This trend allowed tenants to switch to homeownership, freeing up rentals and easing pressure on prices as mortgage rates dipped since the Federal Reserve was expected to cut rates, boosting homebuyer activity. However, a stronger-than-expected jobs report could slow future rate cuts, causing uncertainty around further rent declines this fall.

(data source: urbandigs.com, olshan.com, millersamuel.com, therealdeal.com, picture: Jason Krieger)