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In the third quarter of 2024, Manhattan’s townhouse market exhibited notable resilience and growth, underscoring the enduring appeal of these distinctive properties. Despite broader economic uncertainties, the sector demonstrated robust performance across key metrics.

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Sales and Pricing Dynamics

The quarter witnessed 38 townhouse sales, marking a 58.3% increase compared to Q3 2023, though slightly down by 2.6% from the previous quarter. This uptick reflects sustained buyer interest in Manhattan’s townhouse offerings.

Price metrics also trended upward:

• Average Sale Price: Rose to $10.68 million, a 20.1% year-over-year increase.
• Median Sale Price: Climbed to $7.15 million, up 7.5% from the same period last year.
• Average Price Per Square Foot (PPSF): Increased by 9.7% year-over-year to $1,878.

These figures suggest a strong demand for townhouses, particularly in the luxury segment.

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Inventory and Market Activity

Active townhouse listings stood at 229, a slight 1.3% decrease from Q3 2023, indicating a stable inventory level. Contract activity showed a 50% year-over-year increase, with 24 contracts signed during the quarter, though this represents a 17.2% decline from Q2 2024. The average discount from the initial list price narrowed to 6%, down from 12% in the previous quarter, highlighting a competitive market environment.

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Submarket Performance

A closer look at Manhattan’s submarkets reveals varied dynamics:

• Upper East Side: Accounted for 34.2% of townhouse sales, with an average sale price of $13.41 million, a 21.9% year-over-year increase. The average PPSF reached $1,946, reflecting the area’s premium status.
• Downtown: Represented 31.6% of sales, with an average price of $11.69 million, up 7.9% year-over-year. The average PPSF was $2,164, indicating strong demand in this vibrant locale.
• Upper West Side: Contributed 15.8% of sales, with an average price of $7.33 million, a 2% increase from the previous year. The average PPSF stood at $1,195, suggesting a more accessible entry point for buyers.

Other submarkets, including Midtown East and Upper Manhattan, experienced lower activity levels but maintained steady pricing, reflecting localized demand patterns.

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Final Thoughts

Several key trends emerged during the quarter:

• Luxury Segment Dominance: High-end properties continue to drive market performance, with significant price appreciation observed in premium neighborhoods.
• Negotiation Dynamics: The reduction in average discounts indicates a narrowing gap between seller expectations and buyer valuations, pointing to a more balanced market.
• Stable Inventory: The slight decrease in active listings suggests a healthy equilibrium between supply and demand, mitigating concerns of over-saturation.

Looking ahead, the Manhattan townhouse market is poised to maintain its strength, supported by sustained demand and limited inventory. However, potential challenges such as rising interest rates and broader economic factors warrant close monitoring. Overall, the sector’s performance in Q3 2024 underscores the enduring desirability of townhouse living in Manhattan’s diverse real estate landscape.