Metro New York Home Prices Surge, But Lower Manhattan Struggles

Is this glass half full or half empty? It depends on where you live. It also depends on whether you're buying, selling or holding onto your home.

Home prices in the New York metropolitan area, including the five boroughs, Westchester County and Jersey City, saw significant growth in the first quarter of 2024, according to the National Association of Realtors’ (NAR) latest quarterly report. Compared to one year ago, einnews.com reports, the median price for all residential property types in the New York metro area climbed by 18.4% to $663,100.

However, that kangaroo jump in prices was not universal. The number of sales of Manhattan co-ops and condos dropped to 1,988 in the first quarter of 2024, an 11% dip from the year-ago quarter and a 17% plunge from the last three months of 2023, according to new market data from Douglas Elliman reported by Crain's. Prices also fell three months after notching near-record highs. The median sale price was nearly $1.1 million, down more than 2% in a year and 9% from the fourth quarter.

While the suburbs and outer boroughs were doing comparatively well, Lower Manhattan was hit especially hard. The Downtown Alliance's quarterly analysis reveals that the median purchase price for condominium and cooperative units has dropped to $930,000—a trough last reached in 2013, ebroadsheet.com reports. This benchmark is 11% lower than the same figure for Manhattan as a whole, an inversion of the usual relationship in which Lower Manhattan homes are more expensive than those in the entirety of the borough.

Despite those declines, the New York metro area ranked within the top 10 in the country for price gains. “New York City and the Hudson Valley continue to be among the most desirable locations in the nation, so it’s no surprise that inventory is at a premium and home prices are reflecting that,” says Lynda Fernandez, chief executive at the nonprofit Hudson Gateway Association of Realtors.

To combat stubbornly persistent inflation, the Federal Reserve Bank has paused expected cuts to interest rates, which is putting a damper on sales volume nationally — while boosting the price of real estate in most locations.

“Astonishingly, greater than 90% of the country’s metro areas experienced home price growth despite facing the highest mortgage rates in two decades,” says Lawrence Yun chief economist at NAR. “In the current market, rising prices are the direct result of insufficient housing supply not meeting the full demand.”