The Manhattan real-estate market falls, dropping heavily in the fourth quarter of 2022.
- Manhattan apartment sales fell 29% in the fourth quarter.
- According to a report from Douglas Elliman and Miller Samuel, the quarter brought 2,546 sales, down from 3,560 the year before.
- This drop marks the most significant decline in sales since the third quarter of 2020 during the pandemic and the first price decline since 2020, with the median price being down 5.5%.
- The fall worries brokers that buyers and sellers aren’t listing and buying properties due to fears of the economy and high rates.
Why it’s news
The Manhattan real estate market was doing good after a huge plummet during the pandemic, but now the market is facing another sharp decline, falling 29% in the fourth quarter.
Sellers do not want to list their properties due to lower prices, and buyers are waiting to purchase properties in fear of the country’s economic downturn and high-interest rates.
Many sellers are holding off listing their properties, and without a large inventory, it is unlikely that prices will drop soon.
The outlook for the future looks slow for now as there are not many deals being made right now to contribute to first-quarter sales. There were only 2,312 contracts signed in the fourth quarter, down 43% over last year, marking the lowest number in a decade, according to Corcoran.
Many brokers are staying positive and are hoping for lower rates in 2023 that will lure buyers and sellers back to the market.