Manhattan’s luxury real estate market has skyrocketed impressively in the first quarter of the year. Sales of apartments were up an astonishing 29% over the same quarter a year ago! Taken together, this improving trend is a clear indication that the market is bouncing back. The value of apartment sales in Manhattan tripled to a whopping $5.7 billion, a whopping 56% jump from the same period last year.
The quarter saw 2,560 closed sales, a significant increase from 1,988 in the comparable period of 2023. Yet, the market has surprisingly decoupled from the stock market’s daily volatility. This dynamic is luring first-time buyers who are in search of greater overall stability and diversification in their investment portfolios.
Pamela Liebman, president and CEO of Corcoran, noted the market’s robust performance:
“It’s clear that Manhattan’s market is not just holding steady — it’s thriving.”
And as we’ve noted, the demand for luxury has been vigorous — especially in the month of March, when signed contracts skyrocketed. That’s a very encouraging indicator for upcoming sales as well. Apartments priced more than $10 million are prospering, with contracts signed tripling this month.
Similarly, the ultra-high-end segment, defined as properties with list prices of $20 million or higher, had its strongest first quarter since the start of 2019. Purchasers are more interested in commercial real estate than ever. This shift represents both their interest in an appealing investment alternative amidst today’s volatile stock market climate.
Today’s market realities have refocused attention on the attractiveness of hard assets in primary wealth markets like Manhattan. As buyers wrestle with economic challenges, they are seeking the stability of real estate rather than risky stock investments.
Charlie Attias, a real estate agent with Compass, remarked on the demographic shifts impacting the market:
“There’s a noticeable movement of people returning from Florida and relocating from Los Angeles.”
Not all segments performed equally. The “mid-market” category—properties priced between $1 million and $3 million—showed weaknesses, with a 10% decline in signed contracts for apartments over $3 million. At the opposite end of the market, the funnel was much more effective, with properties priced under $1 million performing much stronger.
A significant trend emerged with all-cash transactions dominating sales, as 58% of sales in this quarter were completed without financing. In the case of apartments over $3 million, a staggering 90% were acquired by all-cash buyers. This shift underscores a growing confidence among luxury buyers, as highlighted by Compass:
“Largely insulated by mortgage-rate fluctuations and driven by portfolio diversification strategies, this highlights renewed confidence among luxury buyers and underscores the broader generational wealth underway.”
That first quarter of 2024 had been surprisingly quiet, so this current quarter looked more appealing to any possible investors. In fact, the current sales total is 1.1% above the historical sales average over the last ten years. This further illustrates that tremendous growth is indeed occurring, but it’s occurring in a generally steady overall market.