Is the residential sales market stabilizing?

Mortgage rates have been fairly flat in the last couple weeks and we might be seeing some stabilization taking place with some believing in a “soft landing” for the economy.

The monthly contract activity stood at 701 in November, down 46.7% compared to last year and down 18% from the 856 historical average for the month of November. The supply, which is the number of units available on the market, stands at 6,618, up just 1% from a year ago and down 11% from the last month, no big deal there. While the number of pending sales, which is the number of units that are currently in contract, stands at 2,483. This value is 39.3% lower than a year ago and 5% than the last month. Given the “normal” supply level but fewer sales we have a pending-to-active ratio (or market pulse) of 0.38, which reminds us that we’re still in a buyer’s market.

Luxury Segment

Last week 21 contracts were signed above the $4 million mark, 7 more than the previous week, with a total asking price of $176,485,000. So another strong week for the luxury segment. The most expensive contract signed was a townhouse at 276 West 11th Street, asking $16.995M.

Rental market

The median rental price for a Manhattan apartment reached the third-highest level on record in November at $4,095 up 18.7% annually; but $400 less than the record breaking $4,500 registered last July. With a -6.9% drop in new lease signings (3,070) from the previous year. Manhattan reached the most significant annual decline in new lease signings since the beginning of the pandemic.

(data source: urbandigs.com, olshan.com, millersamuel.com)