The number of Manhattan apartments sold in the third quarter dropped more than 18% year-over-year, as mortgage rates continued to soar in New York City and stock markets slide further into bearish territory, according to a report from Miller Samuel and Douglas Elliman.

The sharp decline marked the first time since 2020 that apartment sales in Manhattan trended downward. In the fourth quarter of 2020, they dropped by 21% year-over-year, the real estate appraisal and consultancy firm noted.

“While Manhattan sales declined year-over-year from the 2021 sales surge, the number of sales remained significantly higher than pre-pandemic,” the authors of the report said.

When compared to Manhattan apartment sales in the third quarter of 2019, 2022’s third quarter closings were 44% higher, and 24% higher than 2018’s.

Year-over-year median sales prices in the borough, however, ticked up 4.3% to $1,955,042, according to the report.

In June, Manhattan’s average rental price exceeded $5,000 for the first time ever.

Last week, mortgage buyer Freddie Mac reported that the 30-year U.S. mortgage rate rose to 6.70%. The same time last year, the rate stood at 3%.

Additionally, the value of New York City's office space has also taken a hit in recent months. The National Bureau of Economic Research estimates the long-term value of office space is 39% below where it was before the pandemic.