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New York City’s residential market is heating up again after a dip in mortgage rates, marking the best start to the fall since 2021.
September saw a significant uptick in activity, with 1,676 homes going under contract — a sharp 26.4% jump compared to the same time last year, according to a report from listings portal StreetEasy.
The momentum built each week, with 349 deals in the first week of the month and 441 by the last. Manhattan was at the forefront of this boom, recording 726 new contracts, a 28.7% increase from last year.
Among its neighborhoods, the Upper East Side stood out with a 39.2% rise in signed contracts, reaching 167 homes. The report noted that the luxury market, which has been relatively stagnant for months, is finally picking up steam, largely due to price reductions.
In September, the starting price for the city’s luxury homes — defined as the top 10% of listings — dipped to $4.7 million, down from its December 2023 peak of $4.95 million.
That price drop helped push 70 luxury homes into contract last month, compared to 46 in September 2023.
Of those, a staggering 64 were in Manhattan.
The market’s luxury segment is poised for a strong October as well, with last week marking the best stretch for deals on high-end homes in nearly three years, according to Olshan Realty.
Thirteen trophy homes — priced at $10 million or more — were signed into contract in just seven days. New listings in the luxury category also rose 7.9% year-over-year, offering more options for buyers looking to invest in top-tier properties.
StreetEasy analysts noted that both the rise in new contracts and the increase in listings point to “an improving outlook for the luxury sector after a sharp slowdown in 2022 and 2023, amid higher borrowing costs and volatile financial markets.”
For buyers with deep pockets, now seems to be the time to strike, as lower prices and increased availability signal a potential turning point for the city’s luxury market.