Manhattan apartment sales fell by 30% last quarter as fears of a recession, rising interest rates, and a downturn in the stock market has cooled a red hot real estate market.
While sales slowed somewhat in Manhattan, property prices remained high. The media sales price during second quarter of this year rose to a record $1.25 million, according to a report by Miller Samuel and Douglas Elliman.
Overall, there were more than 3,800 sales during the three-month period that stretched from April to the end of June, the highest second-quarter total since 2007, according to CNBC.
But those sales were negotiated earlier in the year — before oil prices shot up past $100 a barrel, the S&P 500 approached bear market territory, and the value of cryptocurrencies tanked.
Real estate sales fell sharply last month, and analysts expect that the next quarter will be even worse since they will more accurately reflect the mood on Wall Street.
The data analyzing completed transactions shows that the median co-op price hit an all-time high of $865,000 while the median price for condos also reached a record of just under $1.9 million.
Vacant units were on the market for 86 days before a buyer was found — down from 137 days in the first quarter.
But the downturn toward the end of the quarter meant that inventory was up 15% compared to the first quarter. As of the end of June, there were 7,968 active listings.
Sales of residential real estate in Manhattan hit a record $7.3 billion in the three months preceding the most recent quarter.
The first quarter saw 3,585 sales in the borough, up 45.9% year over year and 48.9% higher than pre-pandemic levels.
Buying property in Manhattan has become prohibitively expensive, though now renting one in the borough is also costing tenants an arm and a leg.
In Manhattan, the median rent price reached $4,000 for the first time ever, according to a report released by Douglas Elliman last month.
That sky-high sum marks a 25.2% year-over-year climb from the $3,195 Manhattan median rent tallied in May 2021.