April 2024 Newsletter

Today In Real Estate

As we are getting into the thick of the Spring market, we are finally starting to see more inventory. Buyers were out and about in April -- a major improvement compared to 2023 -- but still lacked the urgency to transact. While April figures were underwhelming, so far May has given us some reason for optimism. 

In other news, our website got a facelift! We have added additional resources for buyers and sellers, and are especially excited to share more of our listing before-and-afters. Let us know what you think!

Manhattan Snapshot

April followed the downward trend in demand we began to see in March. Despite a surge in new listings, contracts signed were down from March; however, they were dramatically higher than April 2023 and within 10% of historical averages. While activity has not lived up to the high expectations we had going into 2024, we are still well above 2023 levels.

2,038

New Listings
+14.5% M-o-M
+13.2% Y-o-Y

956

Signed Contracts
-4.2% M-o-M
+12.6% Y-o-Y

Open houses averaged between 1.4-1.9 visitors, up from what we saw this time last year, but still down from January through mid-February, when weekly figures were consistently over 2 visitors. On average 30-40% of open houses had zero visitors. 

$1,344

Median Sold PPSF
+2.4% M-o-M
-8.8% Y-o-Y

$1.14M

Median Sale Price
+7.1% M-o-M
-4.2% Y-o-Y

Buyers may be "window shopping" more than last year, but there has been a palpable lack of urgency. While they are making inquiries and visiting listings, there are fewer offers, and we have seen an uptick in buyers backing out after getting an accepted offer.  With rates inching down and lenders reporting that more buyers looking for pre-approvals heading into May, we are cautiously optimistic.

Brooklyn Snapshot

In Brooklyn, April finally brought some relief in terms of new inventory, and overall contracts signed remained essentially even with last month and this time last year. However, the boroughwide figures tell only part of the story. South Brooklyn had 53% of active inventory but just 41% of contracts signed while red-hot NW Brooklyn had only 21% of all active inventory but accounted for 33% of signed contracts. 

996

New Listings
+13.6% M-o-M
+9.2% Y-o-Y

593

Signed Contracts
-0.8% M-o-M
+0.7% Y-o-Y

On the ground, April open house activity fell off slightly compared to the crazy peaks we saw in January and February, but as we’ve come to expect, buyer demand in Brooklyn dramatically eclipsed Manhattan. Open houses in April averaged between 3.8 and 6.4 visitors each week, with less than 12% of open houses receiving zero visitors.

$953

Median Sold PPSF
+3.1% M-o-M
-0.2% Y-o-Y

$984K

Median Sale Price
+3.5% M-o-M
+3.9% Y-o-Y

Closed sale prices, reflecting deals negotiated at the turn of the year, were even or up across all metrics. It will be interesting to see how the recent uptick in inventory impacts the market in the coming months, although given the pent-up demand, we would expect prices to remain strong and new listings in top neighborhoods to be absorbed quickly.

Mortgage Rate Update

6.5%

Lowest Rate (4/1)

7.125%

Highest Rate (4/26)

After falling at the end of 2023, rates have been rising since late January as a reaction to delays in anticipated rate cuts by the Fed. Rates peaked again in April, but May has begun with a ~25bp cut in response to Powell's remarks on May 1 and the lackluster Jobs Report that came out on May 3. 

In his remarks last week, Powell made it clear a rate cut was not imminent, but in a more positive twist, he also stressed that a rate hike was not being considered. This quelled concerns that the long-term Fed Funds Rate could be higher than we have now, which led many banks to re-price mortgage rates. The Jobs Report similarly bolstered these expectations as it was the first underwhelming report after a string of stronger-than-expected results which had quelled concerns of a recession or rise in unemployment, emboldening the Fed's hawkish stance on rates so far this year.

Anecdotally, there seemed to be an uptick in new pre-approval letters in the last two weeks, perhaps indicating that prospective buyers are tired of waiting for rates to drop and are ready to start shopping now (and refinance later).

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 the first quarter of 2024, the number of cash buyers for Manhattan co-ops and condos increased compared to the previous year, but this didn't translate into a boost in sales volume, with the number of deals falling below 2,000 for the first time in 3 years.
(BRICK UNDERGROUND).

Years in the making, NYC finally has a housing policy with the potential to unleash a surge of new development including office to residential conversions. There’s much more clarity as to what can be developed and how the menu of incentives will affect housing production moving forward.
(FORBES).

Job growth slowed and unemployment ticked higher last month, marking a break from a string of data showing surprising strength in the labor market.  Friday’s Jobs report will keep hope alive for a late-summer interest-rate cut from the Federal Reserve, because it eases fears of an overheating economy.
(WSJ).

New York's new "good cause" eviction law requires landlords to justify eviction or lease non-renewal. However, determining who falls under these protections may pose challenges. Here's what it means for New York renters. 
(GOTHAMIST).

Curated Collection

Explore a collection of our favorite new listings on the Upper East Side. 

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   $1,995,000

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 has a deep & broad knowledge of the housing market here in New York, and she and Isabel make a fabulous team. They're savvy, incredibly reliable and dedicated, and took care of all the ins and outs of our apartment sale: from the major aspects, like having and implementing an aesthetic vision for the space -- suggesting paint colors, rearranging our furniture, even staging it with contemporary decor of their own -- and marketing the heck out of it, to the minor coordination and scheduling details. We trust them both implicitly and always felt we (and our apartment) were in great, professional hands.” 

– Amanda & Jason, a Murray Hill Co-op Seller

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.