M
anhattan Cash Sales Reach Record 69.1% Market Share

    The Manhattan housing market showed resilience in Q2, defying the pessimistic outlook of real estate agents. The surge in cash sales, which reached a record high of 69.1%, was likely driven by robust but chaotic financial markets and low mortgage rates. Financed sales increased modestly at 5.3% annually, while cash sales jumped 23.1%.

    Listing inventory remained consistent with the long-term average, but its reliability is decreasing due to Compass's shift towards private listings. Mortgage rates have been stuck near 7%, with the Fed hesitant to cut rates despite a strong jobs report.

    The high-end market performed well, with Manhattan's median sales price reaching $1.2 million in Q2. Cash buyers, who tend to be in higher property price strata, drove the 16.6% annual increase in sales. If mortgage rates had declined as expected, sales might have been even higher this spring.

    The NYC housing market faces uncertainty with a new mayor on the horizon and ongoing economic policy shocks. Despite these challenges, Manhattan's results are robust, and the economy is showing no signs of recession.