Ed January Newsletter

FROM THE DESK OF YOUR VEST-DRESSED SALESPERSON

January 2024

Hi Friends,

I hope you all have been having a splendid start to the year! Mine has been pretty pretty good (Curbed coming back next month!!!).  We have had our first closing of the year (actually 2!!) and we look forward to what I think will be quite the busy year in real estate!  In my old age (getting older age) I boringly talk about only a few things. My kids, how right now is a great time buy in NYC and how the NY Jets suck so much happiness out of my life (I will spare you this part but just know it's there).  

Just a few weeks into the year and ask any broker  and they will tell you the market already feels quite different from last year's. There is more and more activity... Deal flow is not there yet but it's coming. Mortgage rates have come down, more than a full percentage point lower than they were at their peak in October 2023. As a result, mortgage applications across the U.S. surged by 10.4% during the week ending Jan. 12, the sharpest increase in a year. The Fed we believe will start cutting rates sometime next quarter... There are a lot of people on the sidelines waiting for this. Plus a lot of sellers waiting to take the mortgage handcuffs off and put their apartment on the market (the higher rates meant many home owners could not buy a new home so they did not put their current home on the market). 

In this month's newsletter - on the real estate side we breakdown Q4 in Manhattan and Brooklyn,  and on the not-so-real estate side we delve into what to do for the Lunar New Year (the year of the Dragon - so cool) and  it is still Broadway week with 2 for 1 tickets thru the end of this week. Go take advantage of this! I saw Harmony last week and it was amazing, important and DEEP! Support NYC, support Broadway... 

I would love to hear from you. Let me know if you have any questions or comments or would like to jump on a call, video or get some coffee to chat about the market! 

Best, 

Ed 
917 592 5971

MARKET ROUNDUP

A Look at Manhattan's Q4 Results

The factors we grappled with throughout 2023 — namely, higher interest rates and tight inventory — damaged real estate activity last quarter. But, according to Compass' Q4 Manhattan Market Report, there were bright spots in the data. While closed sales fell 10.2% year over year, contract activity jumped 7.6% on the heels of falling mortgage interest rates. Resale properties stagnated, but new condos fared well — a scenario propelled by existing owners locked into low-interest mortgages and buyers looking to avoid continued renovation price hikes and delays. Other positive news in the report includes brisk luxury sales, with homes priced over $5 million posting double-digit YOY growth. Manhattan's steadfast appeal as a global destination, combined with an improving economy and falling interest rates, will likely bolster results throughout this year.

A Look at Brooklyn's Q4 Results 

Across the river, the stall in Brooklyn real estate activity that began in Q3 continued through the end of the year, according to Compass' Q4 Brooklyn Market Report, primarily due to significant inventory shortages. Available listings in the borough fell 14.6% year over year and 32.1% quarter over quarter. The contracted inventory bumped up prices by 2.4% YOY and slowed signed contracts, which dipped 3.7% YOY. With inventory being the primary challenge, Brooklyn should benefit significantly from a drop in interest rates this year, which should ease the current lock-in effect.

Luxury Properties Topped the Charts in 2023

According to Olshan Luxury Market Report's year-end report, Manhattan's luxury sector fared quite well despite weakness in the overall market. Olshan tallied 1,198 contracts signed for Manhattan properties priced above $4 million in 2023. Condominiums (770) outsold co-ops (269) nearly three-fold, while 132 townhouses and 27 condop contracts rounded out the year's winners. While the contracts totaled $9.99 billion (down from 2022's $10.32 billion), 2023 ranks in the middle of the last decade by number of contracts, outperforming each year between 2016 and 2020.  The reason for this is that these buyers are generally cash buyers and savvy buyers. They know any dip in the NYC market is a smart time to buy! 

MY NEW YORK CITY – A TALE OF TWO NEW YEARS EDITION

Broadway Week is a welcome part of every new calendar year, and this year's edition stretches to Feb. 4 with great two-for-one and upgraded ticket deals to several great shows. Visit or revisit longtime Broadway favorites like "Hamilton," "The Book of Mormon," and "Wicked," or explore wonderful new fare, including "Days of Wine and Roses" or "How to Dance in Ohio." To score your discounted tickets, head to the NYC Tourism Broadway Week portal. You can also use code BWAYWK24 for two-for-one deals at first-party ticket sellers or code BWAYUP24 to grab upgraded seats at $125 per ticket.

Ring in the Year of the Dragon at this year's Lunar New Year festivities taking place throughout the city. On Feb. 11, Flushing's exciting parade stretches from the Glow Cultural Center to Town Hall, culminating in a fantastic cultural bazaar and performances by acrobats, dancers, and singers. Lunar New Year's celebrations span two weekends in Manhattan's Chinatown, beginning with a Firecracker Ceremony on Feb. 10 at Sara D. Roosevelt Park. The Manhattan parade will take place on Sunday, Feb. 25. Head to Lincoln Center's David Geffen Hall on Tuesday, Feb. 20, for the New York Philharmonic's annual Lunar Near Year performance. 

FEATURED SALES LISTINGS

Flatiron

17 East 17th Street, Unit 4

2 BD   2 BA   ~1577 SF   $3,695,000

Chelsea

452 West 19th Street, Unit 5D

2 BD   1.5 BA   ~1022 SF   $1,425,000

Williamsburg

214 North 11th Street, Unit 1B

1 BD   1.5 BA   ~1330 SF   $1,150,000

FEATURED RENTAL LISTINGS

SoHo

8 Greene Street, Unit 6

2 BD   1.5 BA   ~1700 SF   $17,500/mo.

Chelsea

114 West 17th Street, Unit 4R

3 BD   2 BA   ~2650 SF   $15,000/mo.

Chelsea

315 7th Avenue, Unit 5C

1 BD   1 BA   $5,000/mo.

Financial District

90 William Street, Unit 2F

1 BD   1 BA   ~845 SF   $4,100/mo.

Edward Freiberg

Licensed Real Estate Salesperson Licensed as Edward R. Freiberg
M: 917.592.5971
ed.freiberg@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.