According to reports from Douglas Elliman and Miller Samuel, prices in New York City’s Manhattan housing market fell in the second quarter of this year, while sales recovered for the first time in two years.
The average sales price in the borough was down 3.3% from a year ago to about $2 million, though it was up more than 8% from the previous quarter. Sales volume increased more than 31% quarter-on-quarter and was up 12% from last year.
“After two years of sluggish sales and rising mortgage rates, the second quarter offered a respite,” the report said. “Median sales prices declined nominally year-over-year but still reached the second highest level in the past two years.”
Newsweek Miller Samuel could be reached by phone Tuesday seeking comment.
The national housing market has been marked by declining sales as mortgage interest rates remain at around 7%, discouraging potential buyers from making purchases.
Angela Weiss/AFP via Getty Images
In Manhattan, the co-op market saw accelerated sales of homes of all sizes, with median sales prices up about 2% from a year ago and up more than 4% quarterly. Condo sales also surged for the first time in eight quarters on an annual basis, with second-quarter prices up 3.4% from a year ago and up 6.2% from the previous quarter, according to a report from Douglas Elliman and Miller Samuel.
One area where the Manhattan market has struggled is new developments, where average sales prices are down about 3% from the previous quarter, but sales are up 77% in the same period.
“As the second quarter began, the New York real estate market woke up from the doldrums it had been in during the first quarter of 2024. Transactions at all price points began to emerge,” Frederick Warburg Peters, president emeritus at Coldwell Banker Warburg, told CNBC.
Some analysts have suggested interest rates could fall later this year. Mortgage costs are rising in part because the Federal Reserve is raising borrowing costs to fight inflation. Recent trends suggest that price growth is slowing, which could lead to the central bank cutting interest rates later this year.
The Manhattan luxury housing market may be feeling the effects of rising mortgage rates: Average sales prices in this market segment fell 10.5% year over year, but rose more than 3% quarter over quarter, according to a report from Douglas Elliman and Miller Samuel.
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Newsweek is committed to challenging conventional wisdom, seeking common ground and finding connections.
