2022 Q3 New York City Townhouse Report

The Manhattan townhouse market has remained strong through 3Q2022. Year-over-year transaction volume is up 24% vs. the first three quarters of 2021 with 309 sales compared to 250 and pricing remains steady at $1,318 per square foot. Significantly, the average days spent on the market have decreased to 226 days, representing a 42% improvement over last year’s average of 390 days. Since the start of the 3rd quarter market, uncertainty caused by stock market volatility, high inflation, rising interest rates, and supply chain issues have created a more methodical sales cycle. While the 3rd quarter was also weighed down by summer seasonality, we have seen an increase in showings since Labor Day as buyers seek to beat future rate hikes and place their cash into hard assets like real estate. In the luxury market, demand is stronger for move-in condition properties, despite the opportunity to make money converting multi-family properties to single family homes. In the multi-family commercial segment, changes in the rent laws combined with increased borrowing costs continues to put pressure on pricing. The bottom line for buyers seeking to beat future rate hikes and for sellers who are concerned with ongoing market volatility is that now is the time to transact and not hold out for the last dollar. With 48 contracts signed in Manhattan currently, we expect a solid close to the year.