Manhattan Monthly Report: August 2023
Marketwide Contract Activity Diverges by Product Type While Days on Market Continues Upward Trajectory
In August 2023, just over 860 contracts were signed, down 5% from the previous year but up 7% from last month. The annual decline was led by a 20% drop in condo contracts, but co-op activity increased by 8% year-over-year. This month marked the second smallest overall annual decline since April 2022, just before mortgage rates surged.
Contracts below $5M fell 6% year-over-year, while those over $5M rose 9%. The increase in contracts above $5M was driven by the new development market and high-end resales located in the Billionaires’ Row corridor. Days on the market increased 28% compared to last year but fell minimally by 1% compared to July. August 2023 marked the seventh consecutive month of double-digit year-over-year growth in average days on the market.
Tribeca
Average Price Per Square Foot Rises but Inventory Remains Low
In August, there were just over 6,200 listings, a 5% drop from last year but consistent with July. Average price per square foot increased by 12% year-over-year and 10% month-over-month. Pricing statistics this month were influenced by a resale of a full floor residence at 432 Park, which had an asking price exceeding $11,000 per square foot.
Excluding this particular transaction, the overall average stood at $1,797 per square foot, reflecting a 5% annual increase. Furthermore, when we exclude this specific contract, the condo average is $2,019 per square foot, marking a 6% annual increase.
Discounts off last asking prices averaged 4.7%, 2.5% deeper than the previous year. Condos had greater discounts with an average negotiability factor of 6% off last ask compared to just under 3% for co-ops. This month, nearly 70% of sales sold below their last asking price.