Manhattan I-Sales Recap: 2022

In case you missed the Manhattan Investment Sales State Of The Market presentation today, here are some key points:

2022's 315 sales was the most since the 392 in 2018.

2022's $16.1B in volume was the highest since $17.4B in 2019.

While we've cleared the covid-era sales slump, the current economic environment makes it unlikely that a continuation of the upward trend below will continue. There is some (optimistic) speculation that the second half or 4Q 2023 will begin a market rise that will make for a strong 2024/2025 investment sales market.

The 75 transactions in Q4 was a slight increase off the 3Q quarter but 25% less than 4Q 2021, which -- as you can see below -- was the first strong post-covid marker.

Nine out of the ten largest transactions for the year were in the first half of the year as institutional capital kept core assets off the market in what would be negative leverage pricing guidance.

High Level Trends:

• Contract signings have continued to decrease since the first half of 2022; you'll see a continued decrease in volume in the stats in coming months
• There is a lot of inventory in the market; many owners are testing the market to see if there is an opportunity to sell "before it gets worse". We had more listings at the end of 2022 than at any point over the last 5 years. Focus on seller motivation to find the most-real opportunity.
• While there will likely be more FED rate hikes, and increased lending indices, CPI decreased as expected to 6.5% in December which is a great sign of slowing inflation. Let's hope in 9 months the fundamentals will be ready to birth a strong market.

For a recording of the webinar or the full market report (or just to catch up), reach out to me at [email protected].

Remember, This too shall pass!