Marketwide Slowdown with Few Bright Spots in Between

The Manhattan apartment market continued to slow in April 2023, with the number of contracts signed 37% lower than one year ago. April was the thirteenth consecutive month sales were down annually, a decline that has widened over the last two months. Although the month is compared against an abnormally strong April 2022, sales were still 20% below the ten-year April average of 1,211 transactions.

In the decade preceding the pandemic, contract activity increased by an average of 6% between March and April. This year, activity fell 18% month-over-month. Both condo and co-op sales fell by similar margins, monthly and annually. The marketwide slowdown is likely attributed to higher mortgage rates, the recent banking crisis, and the timing of the Easter and Passover holidays.

All price points saw fewer sales than a year ago — but as in the prior month, sales over $5M were down the least — as this market segment is less dependent on financing. Bolstered by sales at Tribeca Green, the Financial District-Battery Park City submarket had the smallest annual decline of all areas. Signed contracts spent an average of 121 days on the market, 17 days longer than a year ago.

Inventory Surges to Two-Year High While Average Price Per Square Foot Falters

With nearly 7,900 active listings, Manhattan apartment inventory reached its highest level since April 2021, with both condo and cooperative listings up 13% year-over-year. There was an unprecedented 29% month-over-month surge in inventory, much higher than the average 7% increase reported between March and April in the last decade. An anxious economic climate and the timing of holidays caused some sellers to delay listing their units until late April, which contributed to the unusual spike.

Overall price per square foot averaged $1,738, down 5% from a year ago. Had there not been some very expensive transactions in Midtown and Downtown, the metric would have displayed a much sharper decline. Discounts off last asking price averaged 3.8%, markedly deeper than last year but essentially unchanged versus March. In April, 63% of sales sold below their last asking price versus 54% one year ago.