NEW YORK CITY BOROUGH BUCKS HOUSING MARKET TREND
New York City's housing market in Manhattan saw sales rebound for the first time in two years, according to a report from Douglas Elliman and Miller Samuel, while prices fell in the second quarter of the year.
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The average sale price for the borough was down 3.3 percent to about $2 million compared to the same time a year ago, even though prices were up more than 8 percent from the prior quarter. The number of sales were up more than 31 percent on a quarterly basis and jumped 12 percent from last year.
"After two years of sliding sales and rising mortgage rates, the second quarter was a reprieve," the report noted. "While median sales price slipped nominally year over year, it was the second highest level in two years."
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Newsweek reached out to Miller Samuel for comment via phone on Tuesday.
The national housing market has been characterized by declining sales amid mortgage rates that hover around 7 percent, dissuading potential buyers.
In Manhattan, the co-op market saw sales accelerating across various sizes, with median sale prices going up nearly 2 percent compared to the same time a year ago, and on a quarterly basis, they increased more than 4 percent. Condo sales also jumped on a yearly basis for the first time in eight quarters, the Douglas Elliman and Miller Samuel report noted, while prices shot up 3.4 percent in the second quarter compared to a year ago and accelerated 6.2 percent from the previous quarter.
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One segment of Manhattan's market that is struggling is the new-development space. Median sales prices were down nearly 3 percent from the prior quarter. However, sales were up 77 percent in the same time period.
"As the second quarter began, New York's real estate market awakened from the doldrums in which it had languished for the first quarter of 2024. Deals in all price categories began to emerge," Frederick Warburg Peters, president emeritus of Coldwell Banker Warburg, said, per CNBC.
Some analysts have suggested that rates may come down later in the year. Part of the reason that the cost of home loans has been elevated is due to the Federal Reserve hiking borrowing costs to battle inflation. Recent trends suggest that the rate of price increases has been slowing, which could lead to a slash in rates from the central bank at some point this year.
In New York City's Manhattan, the luxury market may be feeling the effects of elevated mortgage rates. The median sale price for that segment of the market plunged 10.5 percent from a year ago, though on a quarterly basis went up by more than 3 percent, the Douglas Elliman and Miller Samuel report noted.
2024-07-02T22:48:18Z dg43tfdfdgfd