Manhattan’s real estate market is evolving into a buyer’s market, with apartment prices dropping and inventory levels increasing in the second quarter of 2024. According to reports from Douglas Elliman and Miller Samuel, the average sales price in Manhattan has fallen by 3%, settling just above $2 million, while the median price declined by 2% to $1.2 million. This represents the first price drop for luxury apartments in over a year.
The rise in inventory is a key contributor to these price decreases. Over 8,000 apartments are now on the market, surpassing the 10-year average of around 7,000. With a 9.8-month supply of apartments, Manhattan is firmly in a buyer’s market, where buyers have more leverage in negotiations. As the gap between buyer and seller expectations narrows, more deals are closing, creating opportunities for those looking to purchase in Manhattan.
One of the reasons behind this shift could be the migration patterns sparked by the COVID-19 pandemic. Many New Yorkers sought the sun and space of South Florida, attracted by fewer restrictions, lower property prices, and Florida’s lack of state income tax, which offers considerable savings. This migration, coupled with high interest rates, inflation, stagnant wages, and the fear of tax increases, has likely softened Manhattan’s real estate market as demand has slowed and inventory has grown.
As the Manhattan market transitions, now could be an opportune time for buyers. With more choices and the ability to negotiate on prices, purchasing property in the city has become more accessible. However, for many, the appeal of leaving Manhattan’s “rat race” for the spacious properties and relaxed lifestyle of South Florida continues to grow.
Meanwhile, South Florida’s housing market has been experiencing its own shifts. In July, closed sales of previously owned homes rose by 1.3% from June, marking the first increase in five months, according to the National Association of REALTORS®. Though sales are still down 2.5% compared to the same period last year, the recent decline in mortgage rates is helping make monthly home payments more affordable. In early July, 30-year mortgage rates dropped to a 15-month low of 6.35%, down from a peak of 7.79% in October 2023.
With more New Yorkers relocating to South Florida, we’ve seen an uptick in home sales in the area. If you’re considering escaping the snow, high taxes, and busy lifestyle of New York, we invite you to explore our beautiful neighborhood in Southwest Ranches and beyond. We’re here to help you find your dream home in sunny South Florida!
