Compass' Q3 Manhattan Market Report

Manhattan’s market held up pretty well in Q3, despite high borrowing costs and plenty of economic uncertainty. Closed sales were up 2.7% from a year ago, and the median sale price rose 4.6% to $1.25 million.

But the bigger story is inventory - or the lack of it. Active listings were down nearly 11% year-over-year, while new listings plunged 28%. In fact, it was the slowest third quarter for new listings in nearly a decade. That’s a big reason the market hasn’t had more activity: there simply aren’t enough homes coming on the market.

The $3M-$5M segment was particularly strong, with sales up more than 30% for both condos and co-ops. The very top of the market was strong, too: 14 contracts were signed above $20 million, up 75% from last year. And buyers continued to show an appetite for larger apartments, with contracts on four-plus-bedroom co-ops up 46%.

Downtown led the borough in both market share and average sale price, with sales up nearly 10%. Meanwhile, inventory on the Upper East and Upper West Sides shrank significantly. FiDi/BPC was the outlier, with listings actually increasing 8.4%.

What does this mean? Buyers are still buying, particularly when they find the right apartment. Sellers remain reluctant to list, keeping inventory tight and limiting overall activity. For now, seasonality and the lack of supply appear to be bigger factors than interest rates in determining where the market goes next.

Please email me at bill@compass.com for the full report.