May 2024 Newsletter

Today In Real Estate

Turning the corner into Summer, the Manhattan market has remained quiet. We've noticed that some listings moving very quickly -- if they have low monthlies, have a standout feature(s), and/or are substantially under-priced -- but most are lingering on the market. 

By contrast, in Brooklyn, demand continues to outpace supply in the neighborhoods closest to Manhattan, and there is a noticeable lack of townhouse supply outside of South Brooklyn. These dynamics have limited the number of transactions and have kept Brooklyn prices higher than ever.

Please don't hesitate to reach out if you are navigating this market. Stay tuned for our next report in mid-July recapping the 2nd Quarter. 

Manhattan Snapshot

April showers did not bring May flowers for the Manhattan market, which continued its Spring slump. Despite a healthy level of inventory, contracts signed were down dramatically from even last year's weak showing.

1,772

New Listings
-13.2% M-o-M
+0.7% Y-o-Y

995

Signed Contracts
+4.3% M-o-M
-13.1% Y-o-Y

While the sentiment among brokers is that there has been more buyer interest (more inquiries and showings though not necessarily more offers) than last year, open house data does not support that.  Attendance at open houses has been falling throughout the Spring, hitting a low of 1.22 visitors on average last weekend (June 1-2), with almost half of all open houses (45%) reporting zero visitors.  Closed sale prices were also down compared to last year as sellers have had more time to adjust their expectations and have become more willing to make concessions.  

$1,395

Median Sold PPSF
+2.9% M-o-M
-4.7% Y-o-Y

$1.2M

Median Sale Price
+4.4% M-o-M
-2.2% Y-o-Y

Properties with low monthlies are faring best in this market. Even with rents at an all-time high, interest rates are making the monthly carry on most Manhattan apartments substantially higher than comparable rentals which is causing a widespread chill in sales activity. The other challenge remains uncertainty in the job market for many would-be Manhattan buyers, particularly in the tech sector.  Some households simply do not feel secure enough to commit to a home purchase. But this is a dynamic market and with the election looming, economic indicators, and with them the housing market, may suddenly shift.

Brooklyn Snapshot

Brooklyn continues to seem impervious to the overall slump. Though contracts signed were down compared to last year, prices were up. The lag in contracts can be attributed to fewer new development listings coming on the market and slower sales in South Brooklyn, which has 52% of inventory but just 38% of signed contracts.

1,038

New Listings
+3.5% M-o-M
+3.9% Y-o-Y

647

Signed Contracts
+10.0% M-o-M
-11.6% Y-o-Y

Unlike in Manhattan, closed sale prices in Brooklyn were up both month-over-month and year-over-year. As we've been seeing for several quarters, these increases were driven by gains in North (Greenpoint / Williamsburg) and Northwest Brooklyn (BoCoCa, BK Heights, DTBK, DUMBO, Park Slope, Prospect Heights). These areas made up just 10% and 22% of total inventory, respectively, but 15% and 34% of signed contracts. 

$1,008

Median Sold PPSF
+3.7% M-o-M
+0.7% Y-o-Y

$995K

Median Sale Price
+1.1% M-o-M
+4.4% Y-o-Y

Despite still high mortgage rates, the market in the most in-demand areas of Brooklyn has remained robust. While we don’t expect this to be a Summer or Fall market for the books, we do expect overall demand and activity to remain around current levels.

Mortgage Rate Update

6.875%

Lowest Rate (5/6)

7.125%

Highest Rate (5/1)

Rates did not fluctuate much in May, and as of June 3rd, stood at 6.875%. Last month, the Fed elected to hold the federal funds rate steady for the sixth consecutive meeting. This, in turn, further delayed the anticipated rate cuts that had previously been expected to occur by mid-2024. The Fed's next meeting on June 11-12 is being closely watched as a long-awaited rate cut could finally bring a drop in mortgage rates. 

6/12

Next Fed Meeting

6/7

Next Jobs Report

RATE DATA BASED ON BASED ON CITIBANK'S 30-YEAR FIXED-RATE FOR NON-CONFORMING LOANS, COURTESY OF ZACK TOLMIE, SR. LOAN OFFICER.

Real Estate News

In Manhattan, renovated units currently sell at a 19% premium compared to unrenovated ones, a decrease from the 32% peak in 2022 but still above the 10-year average of 14%.
(FORBES).

More than six out of every 10 U.S. homeowners have mortgages locked at rates that are extremely low — 4 percent or less. Avoiding the new, higher rates has become a huge deterrent not just to buying but to selling, which in turn has reduced inventory for prospective buyers.
(NY TIMES).

Rent growth across the U.S. has significantly outpaced wage growth in recent years, especially since the pandemic, with rents growing 1.5 times faster than wages on average and three times as much in some areas.
(STREETEASY).

Ahead of going into effect on June 30th, Governor Hochul abruptly announced that NYC congestion pricing toll would be indefinitely on pause.
(NYTIMES). 

Curated Collection

Explore a collection of our favorite new Brooklyn Brownstones! 

Listings & Recent Sales

201 E 21st St, #20J

ON THE MARKET

2 BD   1 BA   $1,695,000

69 W 9th St, #11CDE

ON THE MARKET

2 BD   3 BA   $1,795,000

202 Broome St, #10F

ON THE MARKET

2 BD   2 BA   $1,895,000

505 WEA, #6C

IN CONTRACT - BUYER REP

3 BD   2 BA   $2,450,000

79 Worth St,  #4R

IN CONTRACT - BUYER REP

2 BD   2 BA   $2,999,000

123 Chambers St, #PH

JUST SOLD - BUYER REP

3 BD   2.5 BA   $3,455,000

Hear it from our clients! 

“Isil and Isabel are incredibly dedicated, smart, and have a total command of the NYC market. We trusted their judgment and knew they could handle all of the minutiae of each transaction, which made selling and buying much less stressful. We love where we live now and are so grateful to them for making it possible!”

– Danielle and Sean, Sellers of Boerum Hill Condo & Buyers of Bay Ridge House

Isil Yildiz

Licensed Associate Real Estate Broker
M: 985.714.4470
isil@compass.com

Office: 646-982-0353

Compass is a licensed real estate broker. All material is intended for informational purposes only and is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdrawal without notice. No statement is made as to the accuracy of any description or measurements (including square footage). This is not intended to solicit property already listed. No financial or legal advice provided. Equal Housing Opportunity. All Coming Soon listings in NYC are simultaneously syndicated to the REBNY RLS. Photos may be virtually staged or digitally enhanced and may not reflect actual property conditions.