Manhattan is a “buyer’s market” as prices plummet and inventory rises to a 10-year high, according to a new report.
The average price of an apartment fell 3.3 percent to $2 million in the second quarter, according to the research firm. Reports from real estate appraisal and consulting companies Douglas Elliman and Miller Samuel.
The median sale price fell 1.5 percent to about $1.2 million, according to the report.
Manhattan inventory currently has more than 8,000 apartments for sale, up 4.2% from 2023 and the first increase in more than a year, according to the report, first cited by CNBC.
According to the report, inventory is 13.7% higher than the past 10-year average of about 7,000 homes.
A separate report from Brown Harris Stevens said it would take about 10 months to sell 8,000 apartments without new listings coming onto the market.
“Any figure longer than six months indicates an oversupply and buyer’s market,” the report said.
High mortgage rates have kept buyers and sellers on the sidelines, but that’s starting to change.
“Buyers and sellers are becoming less determined,” said Jonathan Miller, CEO of Miller Samuel Inc. “At some point, they can’t wait too long before they feel they have to take action.”
According to the media, the luxury market, which accounts for the top 10% of total sales, saw a higher year-on-year inventory growth than non-luxury markets.
Luxury inventory increased 22.4% from last year to a total of 1,593 units, according to the report.
The average sales price for luxury properties is about $6 million, down 10.5 percent from last year and the first drop for luxury apartments in more than a year, the report said.
Even as 30-year fixed mortgage rates remain stable at around 7%, more sales are closing in Manhattan as buyers are persuaded to take advantage of falling prices.
Federal Reserve Chairman Jerome Powell said Tuesday he needs more data before lowering interest rates, and buyers who rush in now could miss out on an expected surge in demand after the federal government cuts interest rates.
“This is the moment when those on the sidelines will say they wish they had bought then,” Scott Durkin, president and CEO of Douglas Elliman, told The Post in a statement.
The report said 2,609 sales closed in Manhattan in the second quarter, up 12.2% from 1,988 last year.
Rising rents in the city are also encouraging people to buy: The average rent in Manhattan was $4,831 in March. Listing service RentCafeThese prices are likely to rise further as prices tend to spike heading into the summer.
But the surge in deals may not last: The 698 deals signed last month were down from the 811 signed in June of last year, and the number of homes listed in the report is also down.
