Hello Friend,
Welcome to our September 2024 update on Manhattan’s real estate market. This month, we’re seeing shifts driven by interest rates, evolving buyer preferences, and even changes in living arrangements—like the rise of “boommates,” as highlighted in a recent Bloomberg article. Whether you're buying, selling, or renting, understanding these trends can help you make informed decisions in today’s market.
Market Overview: Resilience Despite Economic Challenges
Manhattan’s real estate market continues to demonstrate resilience, with modest declines despite rising mortgage rates and economic pressures. The median sales price in Manhattan slide to $1.2 million, reflecting a 1.5% year-over-year decrease. While buyers are more cautious, demand for properties in prime neighborhoods like Tribeca, Chelsea, and the Upper West Side remains.
Inventory Update: Manhattan’s inventory has seen a 5% increase compared to last year, particularly in luxury condos and new developments. This has provided buyers with more options, but the market remains competitive, especially for well-priced properties in desirable locations.
Interest Rates, High Rents, and Their Impact on Buyers
Rising interest rates—now hovering around 6.5%—are reshaping the market. While some buyers are holding back or adjusting their expectations, those that aren't financing are capitalizing on new inventory. From appraiser Jonathan Miller: “If people were sitting on the fence, the high rents maybe helped push them into the sales market,” Miller said.
Boommates: A Growing Trend in Manhattan
On that note the rental market is seeing a surge in “boommates”—a term coined by Bloomberg to describe Baby Boomers moving in with roommates. This shift is driven by the high cost of living and a desire for flexibility, particularly as rents in Manhattan hit record highs. It also has the makings of an incredible screenplay...
With the average Manhattan rent now at $5,300 per month, both younger professionals and older residents are exploring shared living arrangements to manage costs. This trend has been particularly notable in popular neighborhoods like the East Village, where housing demand remains high, and creative living solutions are becoming more common.
Looking Ahead to Q4 2024
Federal Reserve Policies: Real estate brokers, buyers, and sellers have been longing for an interest rate cut for some time and it's a possibility there will be one this month. Market participants should be prepared for potential fluctuations in mortgage rates, which could affect affordability and demand.
For Buyers: With more inventory on the market and interest rates stabilizing, this could be a good time to explore opportunities. We're seeing significant discounts in pockets of Manhattan from their market peaks in 2016.
For Sellers: Pricing remains critical in today’s market, especially with the increase in inventory. Sellers should ensure their properties are well-maintained and consider professional staging to appeal to discerning buyers.
Have a question about buying or selling real estate in NYC? Please feel free to call me at 646.939.7375.
Best,
Corey Cohen
Founder
The Roebling Group
646.939.7375
@mrcoreycohen
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