December 2023 Newsletter

December 2023 

December Newsletter —

The holidays are upon us and 2024 is waiting in the wings. In this month's newsletter, we cover the November market update, check in with real estate news, and more.

Market Update

We're once again beginning our market update with discussion of the Fed. It seems likely now that their final meeting of the year, which will occur December 12th and 13th, will not result in an additional interest rate hike. That's not their only job at this meeting, though. Attendees will also be speculating on what interest rates will look like over the next year or two. Those prognostications will no doubt be fairly cautious, as inflation is still hovering at around 3.5% rather than the Fed's stated target of 2%. It's anyone's guess how the Fed will fare against increasing external pressure to begin lowering interest rates in the first half of 2024, but Fed Chair Jerome Powell has explicitly stated cuts will not trigger until the 2% benchmark is reached. For now, it all depends on whether they see signs that their current federal rates range of 5.25%-5.5% is continuing to lower inflation without added interference, a task which may soon be complicated  by the additional demands of a presidential election year. 

Since we've been hovering at that mid-5% range since July, it's no surprise that we aren't seeing any hard shifts in the New York City sales markets. Most of the adjustments to sales prices, contracts signed, and inventory are reflective of a more typical December market, in which buyers and sellers are both eager to close before the end of the fiscal year. In both Manhattan and Brooklyn, many of the noted gaps in year-to-year metrics are beginning to narrow, which bodes well for Q1 2024 and that coveted return to normalcy.

Meanwhile, the rental market has once again set a New York City record, with a new median one-bedroom high of $4,300/month in November 2023—that's a 13.5% year-over-year increase. Given that city data considered 55% of New Yorkers to be rent-burdened in 2021, the impact of the current rents is likely substantial. All the usual suspects are at play for the continued rise: low inventory, high demand, and would-be buyers who are staying in rental situations to wait out the current mortgage rates. It will be interesting to see if any gradual cuts made by the Fed in 2024 soften the edges of our tightly-strung rental market.

Let's take a closer look at sales trends in both boroughs.

Manhattan Snapshot

Median Sale Price

+9.1%
Month-Over-Month

+5.3%
Year-Over-Year

Contracts Signed

-4.1%
Month-Over-Month

+3.9%
Year-Over-Year

Average Days on Market

+2.4%
Month-Over-Month

+11.8%
Year-Over-Year

Inventory

-4.4%
Month-Over-Month

-12.8%
Year-Over-Year

Source: Compass November 2023 Manhattan Market Report

Brooklyn Snapshot

Median Sale Price

+7%
Month-Over-Month

+4.2%
Year-Over-Year

Contracts Signed

+8.2%
Month-Over-Month

-1.9%
Year-Over-Year

Average Days on Market

0%
Month-Over-Month

+14.3%
Year-Over-Year

Inventory

-2.1%
Month-Over-Month

-6.4%
Year-Over-Year

Source: Compass November 2023 Brooklyn Market Report

November Market Report - Manhattan

November Market Report - Brooklyn

In the News

This article from Forbes Advisor lays out the current housing market situation on a national scale, taking into consideration everything from the Fed's most recent decision not to raise interest rates to historical trends and what steps to take if you're a buyer in a sometimes unpredictable market. When it comes to whether you should wait to buy, Forbes wisely reminds readers that the best time to buy is when you find a home you love, that meets your needs, and that you can afford.

Read More Here

City Spotlight: Gift of Fifth with Holiday Open Streets

For three Sundays during the holidays—December 3rd, 10th, and 17th—New York City's largest Open Streets initiative will turn Fifth Avenue into a pedestrian playground. Fifth Avenue's already traffic-stopping seasonal extravaganza will literally stop traffic from 48th Street to 59th Street between 12 PM and 6 PM, so you can enjoy a leisurely stroll past iconic window displays and take in all the sights. Special pop-ups and installations lead all the way to the Park with brand experiences, photo ops, and gourmet treats galore.

You can find more information here.

Recently Closed

Hell's Kitchen

505-513 W 43rd St, Unit 1C

1 BD   1.5 BA   1,003 SF   $1,275,000

Upper East Side

38 E 85th St, Unit 7E

2 BD   2 BA   1,200 SF   $1,600,000

Most Recent Mortgage Rates

Rates are from Citibank and are effective as of 12/04/2023. Rates are subject to change without notice.

Everyone’s mortgage needs are different. I have great relationships with mortgage brokers and loan officers from big banks and small banks who can help find the best loan for you. If you're looking for a lender you can trust, I'd love to help. Email me for more.

Rebecca's Resources

I'm an expert at successfully repositioning and selling homes that were previously listed without success. Click here for examples of how I have transformed listings to showcase a property's full potential, securing favorable deals where other agents could not. 

Find out how Compass Concierge can help you prepare your home before coming to market by fronting the costs of upgrading, renovating, and staging at no interest.

I'm born and raised in New York City. If you've got a question, I've got you covered. For recommendations on anything, from trusted out-of-state referrals to the most reliable city moving companies, it's as simple as sending me an email.

Licensed Associate Real Estate Broker
M: 917.952.0414
rebecca.orbach@compass.com

Office: 212-913-9058

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.