T
he Manhattan real estate market is showing signs of recovery after a slow period since 2022. In Q3 2024, demand indicators improved for the first time in two years, with closings and signed contracts rising compared to last year. The number of sales reached about 3,275, a 2% annual increase, while sales volume hit $6.52 billion, a five-quarter high driven by two massive Billionaire's Row deals.

    Marketing times cooled to 108 days, the fastest pace in over two years, as buyers re-engaged with the market. Signed contracts grew at an 8% annual rate, their fastest pace since 2021. These gains suggest Manhattan demand is recovering, but value remains a top priority for today's buyers.

    Average and median price per square foot fell 6% and 9%, respectively, marking the sixth consecutive quarter of decline. However, median and average sale prices rose due to a shift in closings from lower-cost areas to more central locations with adjusted prices favoring buyers.

    Demand growth continues to outpace new listings, with about 3,450 residences hitting the market this quarter, an uptick from last year but still 20% below the average third-quarter level. With sales and inventory typically rising together during market rebounds, we'll be watching for increased new listings in the fall, especially following the Fed's rate cut.