December 2024

December Newsletter —

As December begins, the city sparkles with holiday lights and the festive season is in full swing. In this month's newsletter, we take a look at the state of the market, discuss the latest real estate trends, and more.

Sales Market Update

November 2024 showed positive trends across both Manhattan and Brooklyn, with notable price increases and sustained demand in both markets. In Manhattan, the average sale price rose by 21.6% from October, reaching $2.46 million, while the median sale price increased by 14.2% to $1.23 million, marking a 7% year-over-year gain. Brooklyn saw similar gains, with the average sale price increasing by 7.1% to $1.33 million and the median sale price rising by 8.2% to $1.03 million. Year-over-year, both markets have experienced substantial price growth, with Manhattan seeing a 20.5% increase and Brooklyn up by 19.8%.

While prices continued to rise, contract signings dipped in both markets—Manhattan’s contract activity decreased by 17.4% from October, and Brooklyn’s fell by 9.5%. These declines are typical of the seasonal slowdown that usually occurs towards the end of the year, with buyers becoming more selective and waiting to see what additional listings come to market after the holiday season. Despite these dips, contract activity in both markets was stable compared to November 2023, with Manhattan down only 1% year-over-year and Brooklyn seeing a slight 0.8% increase.

Inventory levels continued to tighten in both markets. Manhattan’s total inventory fell by 4.4% from October, while Brooklyn saw a 4.5% decline. Year-over-year, Manhattan’s inventory is up 2.7%, and Brooklyn’s is down 10.3%. This reduced supply, coupled with steady demand, has kept competition high, with properties priced correctly and in good condition selling fastest.

With fewer listings and rising prices, it is not surprising that the average listing discount decreased in both markets. Manhattan's discount saw a 1% decrease to 7%, and Brooklyn saw a 2% decrease to 4%. Homes in both markets are selling closer to asking prices as competition intensifies and fewer properties are available.

Looking ahead, both markets are expected to continue to benefit from strong buyer interest, despite the typical winter slowdown. Buyers may find opportunities in both markets during the slow holiday season, but competition is expected to increase as we move into 2025. With inventory expected to remain constrained and prices continuing to rise, both Manhattan and Brooklyn’s markets are poised for continued momentum into the new year.

+14.2%

Quarter-Over-Quarter

+7.0%

Year-Over-Year

+39.2%

Quarter-Over-Quarter

+29.4%

Year-Over-Year

Average Days on Market

+8.8%

Quarter-Over-Quarter

+11.9%

Year-Over-Year

Inventory

-4.4%

Quarter-Over-Quarter

+2.7%

Year-Over-Year

Source: Compass November 2024 Manhattan Market Report

+7.1%

Quarter-Over-Quarter

+19.8%

Year-Over-Year

Contracts Signed

-9.5%

Quarter-Over-Quarter

+0.8%

Year-Over-Year

Average Days on Market

-17.1%

Quarter-Over-Quarter

-12.8%

Year-Over-Year

Inventory

-4.5%

Quarter-Over-Quarter

-10.3%

Year-Over-Year

Source: Compass November 2024 Brooklyn Market Report

Rental Market Update

New York City’s broker fee system is set to change with the passage of the Fairness in Apartment Rentals Act (FARE Act), which mandates that brokers hired by landlords be paid by the landlords themselves, not tenants. This legislation aims to eliminate the practice of landlords passing on brokerage fees to tenants, a move that supporters argue will make housing more affordable. However, those who oppose the FARE Act fear landlords will simply pass along their additional cost to tenants in the form of higher rent. Although the bill has passed, it has not yet gone into effect, so its impact on the rental market and rental prices is yet to be seen.

In November 2024, both Manhattan and Brooklyn's rental markets showed a mix of trends, with certain segments experiencing price increases and others seeing declines. In Manhattan, the average rental price for a studio-to-three-bedroom apartment rose to $5,564, marking a 4% increase from last year. However, the luxury market, with units renting for more than $10K, saw a decrease of 7% year-over-year, with the average rent sliding to $15,838, down from $17,001.

In Brooklyn, the average rental price for a studio-to-three-bedroom apartment was $4,158, reflecting a slight decline of 1% from last year. The luxury market in Brooklyn, with rents over $6K, saw continued growth, averaging $8,090, up 1% from last year. Brooklyn also experienced an uptick in inventory, with 1,141 rental units on the market, an increase of almost 50% compared to the same time last year.

While rents are not as high as they were during the peak summer months, both boroughs are still experiencing historically high rents. Despite the uptick in available listings, renters in both areas are facing higher prices in many segments, a trend that is likely to continue in the coming months.

Read the Compass November 2024 Rental Report here.

In the News

New York City's congestion pricing program is set to launch on January 5, 2025, introducing a new tolling system aimed at reducing traffic congestion in Manhattan and generating critical funding for public transit. Drivers entering Manhattan south of 60th Street will be charged a $9 base toll during peak hours if they use E-ZPass, while overnight tolls will be significantly lower at $2.25. Vehicles without E-ZPass will face higher charges, with peak-hour rates set at $13.50 and overnight tolls at $3.30. Commercial vehicles and larger trucks will pay higher rates based on size, while motorcyclists and specific users may benefit from modest discounts when crossing certain tunnels.

The program, approved last month by the Federal Highway Administration, has been years in the making. Initially paused by Governor Kathy Hochul earlier this year over affordability concerns, the original $15 base toll was reduced to $9 to make the system more accessible to drivers while still meeting the program's objectives. Hochul emphasized the plan’s dual purpose: alleviating gridlock in Manhattan’s busiest areas and securing much needed revenue for the Metropolitan Transportation Authority (MTA). Early projections suggest the program will reduce traffic by 13.4% in the congestion zone and generate $15 billion to fund infrastructure improvements, including upgraded train signals, new electric buses, and expanded subway service.

While the toll will apply broadly, limited discounts and exemptions are available. Drivers paying Lincoln or Holland tunnel tolls during peak hours will receive a $3 discount, while those using the Queens-Midtown or Brooklyn-Battery tunnels will receive a $1.50 credit. Drivers earning less than $50,000 annually may qualify for halved tolls after their 10th trip in a month, and residents of the congestion zone earning under $60,000 annually can receive tax rebates on toll payments. Exemptions also apply to emergency vehicles, school buses, and vehicles transporting people with disabilities.

To support commuters who may shift from cars to public transit, the MTA plans to enhance bus services on 23 routes across boroughs outside of Manhattan. These improvements aim to provide reliable alternatives for those impacted by the tolls. The current toll structure is expected to remain unchanged for three years, after which it may gradually increase, potentially reaching the originally proposed $15 depending on financial requirements.

Despite federal approval and state backing, the program continues to face opposition. Lawsuits from groups like the Trucking Association of New York argue that the tolls disproportionately affect businesses and supply chains. Republican leaders, including President-elect Donald Trump, have voiced strong opposition and pledged to challenge the program. However, the phased implementation of the tolls aims to solidify the system before any potential political changes could disrupt it.

As the January 5th start date approaches, the program marks a pivotal moment in New York City’s efforts to reduce congestion, improve transit, and create a more sustainable urban environment. Its success will depend on striking a balance between reducing traffic, ensuring equitable tolling, and delivering promised transit enhancements. For drivers, residents, and commuters, it signals the beginning of a transformative approach to navigating the city.

City Spotlight: Bronx Zoo Holiday Lights

The Bronx Zoo’s dazzling seasonal tradition, Holiday Lights, has returned, bringing animated displays and glowing depictions of animals from across the globe.

This year’s celebration features 400 wildlife lanterns representing 100 species, spread across six trails, each spotlighting a different region, from North America to Africa and Latin America. A new interactive lights section invites visitors to enjoy stepping stones that light up and sparkling pathways.

Don’t miss the holiday train, ice carving demonstrations, and festive treats like apple pie nachos and warm spiked apple cider.

Holiday Lights runs on select dates through January 5 at the Bronx Zoo. Click here for more information.

Just Sold

Lenox Hill

174 East 74th Street, Unit 10G

2 BD 1 BA 850 SF $799,000

Sold for 98% of ask

With approximately 850 square feet of living space, this inviting home boasts east-facing windows that bathe the interior in sunshine throughout the day, offers abundant closet space, the ability to install a washer/dryer, and an incredibly low-maintenance, all in a full-service coop ideally positioned west of Third Avenue.

Kips Bay

251 East 32nd Street, Unit 5J

1 BD 1 BA 775 SF $599,000

Sold for 99% of ask

This recently renovated home is sunny, spacious, remarkably quiet, and boasts ample closet and storage space. Featuring wide-plank white oak floors and charming views of townhouse gardens through expansive windows, the apartment exudes a bright and cheerful atmosphere.

Just Listed

7 West 92nd Street, Unit 76

2 BD 1 BA $899,000

This top floor, fully renovated two-bedroom home is ideally located just steps from Central Park. With 9’ ceilings, an in-unit washer/dryer, three exposures with windows in every room, and charming details like exposed brick and a decorative fireplace, this home is not to be missed.

East Village

645 East 11th Street, Unit 1

Located in the East Village, this retail condo was formerly a dental office. There are three exam rooms and two street entrances.

In Contract

Lenox Hill

400 East 70th Street #3003

2 BD 2 BA 1,150 SF $1,999,000

Perched on the 30th floor with breathtaking views from three different exposures, this expansive home has been fully renovated, and not a single detail has been overlooked. Enjoy 75 square feet of private outdoor space, an open chef’s kitchen with top-of-the-line appliances and a large island, and laundry just down the hall, all in a full-service condo.

Upper East Side

1049 Park Avenue, Unit 6B

3 BD 2 BA 1,550 SF $1,250,000

This stunning 1,550 square foot home offers 9' 5" ceilings, original moldings, and tons of prewar charm, all in a prime Park Avenue location.

Upper West Side

150 West End Avenue, Unit 21H

1 BD 1 BA 900 SF $799,000

This spacious home is bright and offers stunning views of the building's garden. Set in an ideallocation on West 66th Street, this home is proximate to tons of dining options, transportation, and cultural institions.

Astoria

21-21 31st Street,

Unit 5C

1 BD 1 BA 702 SF $3,900

Offered furnished or unfurnished.

This newly constructed southeast-facing one-bedroom features oversized windows that fill the home with natural light all day long. With high ceilings, an in-unit washer/dryer, and a private balcony, this residence offers modern comfort and style. Situated in the heart of Astoria, The Rowan is just steps from great restaurants and major transportation.

Coming Soon

CLINTON HILL

110 Clifton Place, Unit 2A

1 BD 1 BA $950,000

Fully renovated and exceptionally bright with southern and northern exposures, this prewar loft features high beamed ceilings, oversized windows, an open chef's kitchen, and hardwood floors throughout.

For more information, please contact me.

Upper east side

Pre-War One-Bedroom

This charming prewar one-bedroom is quiet, with windows in every room and access to a range of building amenities, including a common courtyard, laundry facilities, bike storage, and a children’s playroom. Situated on 88th Street and Second Avenue, this residence offers convenient access to the 4/5/6 and Q trains, as well as the 86th Street crosstown bus.

Contact me for details.

NoMad

88 Lexington Avenue

2 BD 2.5 BA 1,541 SF $12,500/month

This luxurious east-facing split two-bedroom, two-and-a-half-bathroom home features oversized windows with open views, ceilings over 10 feet high, an in-unit washer/dryer, a separate office area, and central AC, all a building with more than 10,000 square feet of amenities.

Contact me for details.

Off-Market

Rental Buildings in Prime Locations

Four rental buildings available off-market, offered individually or as a package. Located on the Upper East Side, Upper West Side, and Gramercy, these properties feature a mix of rent-stabilized and free-market units, with all buildings fully occupied. Each building contains between 6 and 17 units. For more information, please contact me.

Lower East Side

265 East Houston Street, Unit 7

2 BD 2 BA 1,400 SF $9,995

Available short term (three months minimum) or long term, furnished, unfurnished, or partially furnished.

Ideally located in the heart of the Lower East Side, this expansive seventh-floor loft-style home offers unparalleled luxury living. Boasting exclusive elevator access and a private balcony, this residence features an array of modern amenities, including an in-unit washer/dryer.

Most Recent Mortgage Rates

Rates are from Citibank and are effective as of 12/9/2024. 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 the best holiday light displays to the coziest coffee shops, it's as simple as sending me an email.

Licensed Associate Real Estate Broker

M: 917.952.0414

rebecca.orbach@compass.com