Happy New Year! In 2023, the real estate market experienced some unique challenges. Interest rates rose to levels not seen in over ten years, but towards the end of the year, rates started to come down and sales began to pick up. As we enter 2024, let's take a look at the latest market report from Elliman and summarize the last quarter of 2023.
For co-ops and condos, sales and listing inventory continued to decrease, while prices started to rise. The median sales price increased compared to the previous year, marking the first rise in five quarters and the second-highest fourth quarter on record.
Listing inventory declined for the third consecutive quarter, and the rate of sales decrease also slowed down.
Cash sales surged, making up more than two-thirds of all sales and reaching a record-high market share. Although resales decreased compared to the previous year, sales above $5 million increased significantly.
Co-op sales increased compared to the previous year, which hadn't happened in six quarters. The median sales price for condos also edged higher for the first time in five quarters.
Luxury properties saw an annual increase in median sales price for the third time and remained significantly above pre-pandemic levels. Luxury listing inventory decreased for the third consecutive quarter.
In the new development sector, listing inventory declined for the fourth consecutive quarter compared to the previous year. New development sales also decreased for the sixth time, as excess supply from the pandemic was being sold off.
These are some of the key highlights from the real estate market in the last quarter of 2023. I’ve attached the complete market report for those interested in more details.