Prices and sales fell in Q3 while financed sales reached a record high of 57.2% due to plummeting mortgage rates. The resales market also showed signs of slowing, with sales prices and number of sales falling sharply after a streak of gains that contrasted the overall market. While Q2 is often the busiest time of the year for real estate, much of the Q3 decline is attributed to the unprecedented spike in sales during Q2 in order to avoid the statewide mansion tax levied on homes of $1 million or more. To adjust, Elliman conducted a two-quarter comparison of the Manhattan real estate market, which showed a 1.7% decline in sales from 2018, in contrast to the 14.2% drop when comparing just the third quarter.
- The median sales price dropped 8.2% in the last year and 15.6% from last quarter to $1,025,000
- The average sales price was down 14% from last year and 21% from last quarter
- The number of sales declined 14.2% from last year and 13.4% from last quarter
- Average price per square foot reached its lowest level in four years at $1,524
- Listing inventory is up 6.2% from last year, but down 2.7% from last quarter
- Average days on the market remain steady at three months
- Listing discounts continue to hover around 5%
Resales still account for the lion’s share of Manhattan real estate sales, representing 86.2% in Q3. After four quarters of gains, however, the resales market finally felt a slip in the number of sales as well as price. It also experienced a shift to smaller unit sales, with the average unit size in Q3 down 8.9%.
- The median sales price dropped 8%, from $995,000 to $915,000
- The average sales price dropped 17.8% from last year and 24.1% from last quarter
- Number of sales fell 15.9% from last year and 8.2% from last quarter
- Days on the market are up slightly to just under three months
- Listing discount increased slightly, from 5% to 5.7%