February 2024 Newsletter

February 2024

February Newsletter —

The days are getting longer as we progress through the month of February. In this month's newsletter, we delve into the January 2023 market update, explore the latest in real estate news, and more.

Market Update

We're now a few days past a Fed meeting where rates were held steady, with any potential interest rate cuts deferred to March at the earliest. Economists at Fannie Mae are predicting the first cuts will come in May. The Fed is remaining pointedly neutral pending more economic data that would indicate additional easing of inflation and slower growth of the economy. It's not the news a lot of economics and real estate experts were hoping for, but it's also not surprising. For now, "steady" will see us through a few more months of collecting data that may help the Fed be more forthcoming with specifics.

One of those data points includes the decrease of the average 30-year fixed mortgage rate to just above 6.5% in the first week of January 2024, a welcome change after October 2023's 8% high. This is good news, both for buyers who've been holding off until affordability improves, and for sellers who price their properties competitively. These savvy sellers will stand out in New York City's current housing market, where the discrepancy between recorded sale prices and initial list prices (sale-to-list ratio) is high. 

In Manhattan, the sale-to-list ratio in December 2023 was the lowest in the city, with an average property receiving less than 94.9% of its asking price. A year ago, that number was 95.8%, and two years ago it was 96.2%. January 2024 in Manhattan, meanwhile, saw an increase in contracts signed for condos of 15.5% month-over-month, with a drop in median price of 4.5% compared to December 2023. That's a marked difference when compared to co-ops, where contracts signed decreased 9.8% with nearly negligible increases in median price. 

In Brooklyn, the sale-to-list ratio in December 2023 was the city's highest at 97.5%. This is further reflected across several metrics during January 2024, as both median and average sales prices increased more than 7% month-over-month. It's not surprising that closing deals at that sale-to-list ratio can mean letting a listing sit and wait for a motivated buyer, which is why the average days a property spends on the market is up both month-over-month and year-over-year.

The rental market, meanwhile, continues its slow stabilization as inventory returns to the market and rents begin to decrease from their record-breaking highs. Manhattan, it seems, is leading the way in that regard. The Manhattan luxury market saw the largest price decrease with average rents down 12% year-over-year.

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

Manhattan Snapshot

Median Recorded Sales Price

-2.9%
Month-Over-Month

+16.1%
Year-Over-Year

Contracts Signed

-0.1%
Month-Over-Month

+7.0%
Year-Over-Year

Average Days on Market

-3.3%
Month-Over-Month

+10.6%
Year-Over-Year

Inventory

+1.3%
Month-Over-Month

-5.0%
Year-Over-Year

Source: Compass January 2024 Manhattan Market Report

Brooklyn Snapshot

Median Recorded Sales Price

+7.1%
Month-Over-Month

+6.3%
Year-Over-Year

Contracts Signed

-2.6%
Month-Over-Month

+12.2%
Year-Over-Year

Average Days on Market

+5.0%
Month-Over-Month

+14.4%
Year-Over-Year

Inventory

-3.5%
Month-Over-Month

-8.4%
Year-Over-Year

Source: Compass January 2024 Brooklyn Market Report

Manhattan - January 2024 Market Report

Brooklyn - January 2024 Market Report

In The News

Those shiny new "open gangway" trains are officially on the subway, according to NBC New York. Instead of individual cars connected to one another, this $2.5 million upgrade has one long, open corridor. There's more space for passengers and wider doors, both of which allow for greater accessibility for New Yorkers with mobility aids. This new design, which is similar to the London Tube, the Boston T, and the Paris Métro, may also help deter subway surfing. For now, they're only running on the C line. 

Read More Here

City Spotlight: The Fest for Beatles Fans

Sixty years ago this February, the Beatles made their iconic landing at JFK Airport, marking the beginning of Beatlemania and reshaping the landscape of contemporary music. To commemorate this revolutionary moment, enthusiasts gather annually at The Fest for Beatles Fans, a three-day celebration taking place from February 9-11 at the historic TWA Hotel at JFK Airport.

The event promises a stellar lineup of Beatles-related special guests, including Micky Dolenz of the Monkees, along with activities ranging from Beatles yoga and transcendental meditation to trivia, a Beatles museum, and live music performances. As the fest celebrates its 50th year, it remains a vibrant homage to the timeless legacy of the Fab Four.

Tickets start at $89 for a single day and go up to $299 for a three-day pass, offering fans a ticket to ride through the cultural revolution sparked by the Beatles' arrival in America.

Recently Closed

Lenox Hill

255 East 74th Street, Unit 8C

3 BD   3 BA   1,825 SF   

$3,150,000

Off-Market Listings

Upper East Side

Perfect for an investor or end user. 
Tenant in place paying $7,750/month. Tenant can vacate with 30 days' notice. Contact me for details.

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.

Kip's Bay

This sunny, spacious, renovated home has open city views from southern and western exposures. The apartment features hardwood floors, an open kitchen with stainless steel appliances, and six large closets, including two California closets. 

Contact me for details.

Most Recent Mortgage Rates

Rates are from Citibank and are effective as of 02/05/2024. 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 new exhibits in NYC's many museums to reviews on that new dim sum place down the street, it's as simple as sending me an email.

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

www.rebeccaorbach.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.