Data: Miller Samuel/Douglas Elliman; Chart: Axios Visuals
The share of all-cash buyers in the Manhattan real estate market hit a new high in the fourth quarter of 2023, according to a report out Wednesday from appraiser Miller Samuel Inc. and brokerage Douglas Elliman Real Estate.
Why it matters: It shows that even markets long associated with cash buyers aren't immune to the impact of sky-high mortgage rates, said Jonathan Miller, CEO of Miller Samuel, who's been tracking the data since 2014.
Cash buyers, typically the super wealthy, usually make up about half the market in Manhattan, he said. (Though that dynamic changed a bit when rates got very low in the early 2020s.)
By the numbers: The average sale price of a Manhattan apartment rose to $2 million in Q4, up 3% from the previous quarter.
But luxury sale prices climbed 12% over the same period.
What to watch: Mortgage rates. They're falling — the average is now 6.6%, down from highs last year around 8%. That'll boost the number of sales to "mere mortals" who need a loan, Miller said.