Source: CNBC —
Manhattan apartment sales fell by 29% in the fourth quarter, sparking fears of a frozen market in which buyers and sellers stay on the sidelines due to economic and rate fears.
There were 2,546 sales in the quarter, down from 3,560 last year, according to a report from Douglas Elliman and Miller Samuel. The decline was the largest since the third quarter of 2020, during the depths of the pandemic.
Prices also declined for the first time since early 2020, with the median price down 5.5%.
The declines in both sales and prices mark the end of the roaring comeback in Manhattan real estate after the worst days of the pandemic and raise fears of continuing weakness into the new year. Rising interest rates, a weaker economy and a falling stock market, which has an outsized impact on Manhattan real estate, are all likely to weigh on the market this year.
Analysts say their big worry is a prolonged standoff between buyers and sellers — with sellers unwilling to list amidst falling prices and buyers pausing their searches until prices fall further.
“I could see the market moving sideways, with some modest declines in some sectors,” said Jonathan Miller, CEO of Miller Samuel, the appraisal and market research firm. “And it could weaken further if there is the backdrop of recession and job loss.”
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