Much has been said about the recent drop in the number of condos and co-ops sold in New York City in 2022. For the first time since 2022, home sales dropped—both in numbers and dollars— in the fourth quarter of 2022. The median sales price of $1.1 million in the fourth quarter of 2022 was 5.5% lower than the median price for the same period in 2021.
The decline is mostly due to persistent low inventory and rising interest rates. Buyers simply aren't finding many options to choose between, and when they do find a place they love, they learn it will cost them much more than it would have in 2021 because of higher mortgage rates.
Cash is King
This is why more than half of all Manhattan buyers paid cash for their properties, the highest percentage of buyers since that number began being tracked in 2014. In fact, the luxury sector has trending upwards, even as other sectors trended down. The median price of the top 10% of condos and co-ops bought in the fourth quarter of 2022 was $5.8 million, which is more than 4% higher than last year, and almost 22% higher than in late 2019.
Though overall sales are slipping, real estate sales in Manhattan are still quite strong. Prices, though lower than they were last year, are still 10% higher than the median price in 2019, and closings, though lower than in 2021, are nearly 6% more than they were three years ago.
What Does This Mean for You?
Don't be misled by numbers that can seem grim. For some people, it's actually a great time to buy or sell, even if it's not for others. If you're unsure which group you fall in, or if you're in a situation that requires you to buy or sell this year despite the market, the expert team at The Law Office of Melvin Monachan can help you weigh your options. We've been through decades of ebbs and flows in New York's never-boring real estate market and can help you decide your best course of action. Call us today at (347) 389-1682 or contact us online.