The Manhattan Residential Real Estate Market
Welcome to another edition of Streets365 Weekly. Each Sunday, I take a look at what’s happening in the Manhattan residential real estate market, what the latest numbers suggest, and some of the developments that deserve our attention as agents. The idea is to give you a little more perspective on the market you’re working in and the conversations you’re having with buyers and sellers.
Manhattan Market Dashboard
Active Inventory: 6,101
New Listings: 342
Signed Contracts: 195
30-Day Contract Pace: 668 — 30-day rolling total
Median Days on Market:
Under $1 million: 79 days
$1 million–$2 million: 91 days
$2 million–$4 million: 82 days
$4 million and above: 123 days
30-Year Fixed Mortgage Rate: 7.40%
These are the most current figures available to us.
What I Notice
I think we’re beginning to see a more interesting picture of Manhattan’s fall market. Signed contracts increased to 195 last week, up from 182 the previous week, and the rolling 30-day contract pace has reached 668. That suggests buyers are becoming more active as October progresses. It’s encouraging, particularly after the slower period we experienced in September, although the number of contracts remains below the comparable period last year.
Inventory tells another part of the story. There are now 6,101 apartments on the market, compared with 6,027 the previous week. That’s a relatively modest increase, and new listings actually declined from 396 to 342. I would pay attention to that combination because buyers may be seeing more apartments overall without necessarily finding many more properties that are new to the market.
There’s another consideration worth discussing with buyers. A substantial portion of Manhattan’s available inventory has already been on the market for 90 days or longer. Those apartments aren’t necessarily poor choices. Some may simply have been priced too aggressively when they first appeared, while others may have characteristics that appeal to a smaller group of buyers. For an agent who understands the building, the apartment and the seller’s circumstances, some of those listings may deserve another look.
Mortgage rates remain a significant part of the conversation. Freddie Mac reported a 30-year fixed rate of 7.40% on Thursday, unchanged from the previous week but considerably higher than the 6.27% recorded a year ago. Buyers who need financing are still working with a substantial monthly cost, and that influences both their purchasing power and their willingness to make commitments.
My reading of the market is that buyer activity is improving, but buyers remain selective. For sellers, realistic pricing continues to matter. For buyers, understanding the difference between an apartment that has been overlooked and one that has genuine drawbacks can create opportunities. I would be careful about declaring a broad market shift based on two stronger weeks, but I think there’s enough movement now to make the next several weeks worth watching closely.
Thought for the Week
A recent New York real estate story raised an interesting question about the future of historic churches and other buildings that may no longer serve the purpose for which they were constructed. Preservation advocates are concerned about losing buildings that have been part of New York’s neighborhoods for generations, while the city continues looking for opportunities to create more housing.
I think there’s another consideration worth exploring. Suppose a church has been closed for years, its congregation has moved away and the building is deteriorating. Preserving the structure may be worthwhile, but what happens to it next? An empty building doesn’t necessarily contribute very much to the neighborhood simply because it’s still standing.
New York’s landmark laws recognize that distinction. Landmark status can protect a building’s architectural and historical significance without requiring it to continue serving its original purpose. In fact, the Landmarks Preservation Commission has approved the conversion of former churches into residential properties, including a long-vacant church on St. Felix Street in Brooklyn and a former church-associated building on East 7th Street in Manhattan.
I find that encouraging because New York has always adapted its buildings as the city changes. Former factories have become residential lofts, commercial buildings have been converted to apartments, and structures built for one generation have found entirely new purposes for another. The result can be housing that retains architectural character and offers something quite different from a newly constructed building.
For real estate agents, I think there’s an interesting lesson in these conversions. A building’s history can contribute to its appeal, but its future depends on whether it can meet the needs of the people who will use it. Preservation and residential development don’t always have to be competing objectives. Sometimes the most sensible way to preserve an old building is to give it a new life.
Think Beyond The Deal.
George