The Manhattan luxury real estate market experienced a surge in home contracts during the third quarter of 2024, despite a notable decrease in available listings. According to recent reports, sales of residential properties priced at $20 million or more saw a 16.7% year-over-year increase, signaling a significant uptick in high-end property activity.
Historically, real estate activity in Manhattan tends to slow down during the summer months. However, the third quarter saw a surprising rise in ultra-luxury home deals, driven by a strong stock market and lower interest rates. Compass, a leading brokerage, reported a 15.4% jump in contracts for homes priced at $10 million and above. Meanwhile, properties listed at $20 million or more experienced the largest growth in contract activity.
Despite this, the overall Manhattan housing market faced challenges, with closed sales declining by 1.8% compared to the same period in 2023, totaling 2,694 transactions. Experts attribute this dip to limited inventory, with only 7,300 active listings in the third quarter, slightly lower than the 7,400 available the previous year. This shortage is also evident at the top of the market, where the number of properties listed at $20 million or more fell by 10.3%.
Tony Sargant of Compass noted that the combination of low inventory, higher interest rates, and hesitant sellers has contributed to the slowdown in sales. Buyers, however, remained eager to move forward, spurred by favorable economic conditions.
The median home price in Manhattan rose by 2% year-over-year to $1,150,000, reflecting both the shortage of high-end listings and the overall demand for homes in the city. Industry experts expect the market to become more competitive as mortgage rates continue to decline. With the Federal Reserve cutting interest rates for the first time in four years, the standard 30-year fixed mortgage now averages around 6.12%, down from nearly 8% last year.
As rates decrease, more buyers and sellers are expected to re-enter the market, pushing Manhattan closer to a seller’s market. Experts predict a stronger 2025, with the market poised for growth as inventory struggles to meet the increasing demand.
Discover more about real estate and promotions at propertynewsasia.com.
