The real estate market in Manhattan is currently undergoing a shift favorable to buyers, as sellers face increasing challenges. Recent data points to a transitional phase marked by a rise in seller challenges and a simultaneous uptick in buyer opportunities.
One key factor to consider is the lagging sales data. Sales data reflects deals that were done two months prior, meaning it is not an accurate reflection of the current market conditions. Sellers who base their pricing strategy on this delayed data risk either overpricing or underpricing their listings, as they may be misaligned with the prevailing market sentiment.
Looking at the contracts signed in recent months, there is a clear decline in contract price per square foot and the number of high-end deals. This suggests that the market is actively contracting and that sellers are becoming increasingly vulnerable. As new listings come online for the fall, sellers who have had their properties on the market since summer may be more willing to offer discounts and negotiate on pricing.
For buyers, this presents a favorable opportunity. With declining liquidity, a cooling climate index, and a decreasing rate of listing success, sellers are more open to negotiation. Buyers who are willing to make some concessions and invest in interventions may find good value in the current market.
For sellers, it is important to reassess pricing strategies, especially for properties that have been on the market for over 90 days. With newer listings competing for attention, it may be necessary to reconsider pricing, especially as demand is expected to see a seasonal uptick in October.
Overall, the current market landscape in Manhattan is shifting towards buyer favorability. Sellers are facing increasing challenges, while buyers have more choices and negotiation leverage. However, it is important for participants and professionals to remain vigilant and adapt to the market’s shifts in order to find success in the coming months.