2022 was a very interesting year in Manhattan real estate. The year started out hot, coming off a great 2021 and the city’s incredible recovery from the pandemic. Over the course of the year, the real estate market gradually slowed down with rising mortgage rates and economic inflation. Still, home prices held strong and continued to rise in some market segments.
Manhattan Real Estate Sales Trends
Now that 2022 is over, it’s time to take a look at the Manhattan real estate sales data from the fourth quarter. Douglas Elliman has released its quarterly Manhattan Sales Report, and as always, there are some very interesting findings. Q4 is always the slowest time of year for New York real estate, so it was no surprise to see some numbers drop compared to Q3. Last winter was unusually active in our luxury market, so we also want to compare the 2022 numbers with 2021.
One of the most unexpected trends in 2022 was the housing supply. Many experts predicted there would be an influx of new homes on the market, both with new construction increasing and plenty of property owners ready to sell. Listing inventory actually decreased throughout the year (closer to pre-pandemic levels). However, sales and prices were much better in 2022 compared to 2019.
There was an increase in listings within the new development segment, which provides some positive indicators for housing supply heading into 2023. Some expect pricing to continue leveling out and potentially dropping in some markets. However, any pricing shifts are expected to be very modest at most. Much of what happened in 2022 was a natural market correction after a swift post-pandemic market recovery. Now, it seems things may remain steady for awhile, especially as inflation eventually recedes and mortgage rates level out.
Elliman Report: Q4 2022
As always, we like to review The Elliman Report. Here are some of the key findings from the Q4 2022 Manhattan Sales Report:
Manhattan Co-ops and Condos:
- Average Sales Price: $1,940,565 (down 0.7% from Q3 2022, down 0.4% from Q4 2021)
- Days on Market: 76 (up 8.6% from Q3 2022, down up 2.7% from Q4 2021)
- Listing Inventory: 6,523 (down 15.7% from Q3 2022, up 5.1% from Q4 2021)
Manhattan Luxury Homes:
- Average Sales Price: $8,0258,356 (up 0.4% from Q3 2022, up 3.6% from Q4 2021)
- Days on Market: 100 (up 9.9% from Q3 2022, up 17.6% from Q4 2021)
- Listing Inventory: 1,459 (down 10.9% from Q3 2022, up 7.9% from Q4 2021)
Manhattan New Development:
- Average Sales Price: $3,187,337 (down 19.8% from Q3 2022, down 6.7% from Q4 2021)
- Days on Market: 88 (up 6.0% from Q3 2022, down 16.2% from Q4 2021)
- Listing Inventory: 1,197 (up 4.5% from Q3 2022, up 0.2% from Q4 2021)
Anyone buying or selling property in New York in 2023 will want to be properly prepared. Please contact us today if you want to discuss the current market conditions in greater detail. We are here to guide you!