April 2024 Newsletter

Q1 2024 Market Update ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏

April Newsletter —

Spring is in the air: flowers are blooming, birds are singing, and all of New York City will take to the parks as the weather warms up. In this month's newsletter, we delve into the Q1 2024 market update, explore the new congestion pricing, and more.

There's a lot to be hopeful about now that the figures from Q1 2024 have been released. Things are looking up across multiple metrics, including a positive turn in the $4M+ luxury sales market, which has been struggling for some time. Overall, the data gives reason for confidence that the volatile market trends of the last four years are starting to stabilize toward a more predictable pre-pandemic balance. However, this should be viewed with caution, as the consumer price index showed a 0.3% increase in inflation during March, potentially delaying any interest rate cuts the Fed is considering.

In the meantime, many New York City buyers have learned to cope with higher mortgages in exchange for the right home. In any of the boroughs, a well-priced property can land multiple bids in less than 30 days. Condition is key here, though, and even a few small updates can make all the difference. Buyers are increasingly reluctant to consider homes that require a lot of work on top of already-steep mortgages, especially with the higher costs of renovation and continuing supply chain issues. On the other end of this dynamic, some homeowners are choosing to renovate rather than selling to keep their current low mortgage rates.

In Manhattan, the decrease in recorded sales and their prices during Q1 is not reflective of our current situation, but rather the dregs of Q4 2023's slowdown in contracts signed. The better metric to gauge the current market is in the number of contracts signed during Q1 of 2024 and their last asking prices, both of which are up quarter-over-quarter and year-over-year. Inventory is officially at pre-pandemic levels, with Q1 2024 data aligning with Q1 2019.

The Brooklyn market is running hot, especially the northwest area from DUMBO to Park Slope. While there was a small increase in inventory, the trend to watch will be the continued price increases in the borough's most popular neighborhoods. Homes are climbing into the $6M, $7M, and even $10M range, which in turn is pushing competition further south into less gentrified neighborhoods. It will be interesting to see if these prices are reaching a tipping point or if they continue to climb throughout the year.

The rental market is still fiercely competitive, but slowly cooling. Despite a 1.8% year-over-year decrease in median rent in Manhattan, March still marked the second-highest median rent on record. Similarly, new lease signings decreased by 1.8% year-over-year, yet it was still the third-highest March on record for signed leases. Remarkably, Brooklyn's rental market increased across the board yet again, including median rent, new leases signed, and new inventory. Manhattan continues to be the most tenant-friendly market, as rent prices in the outer boroughs (Queens in particular) are still climbing dramatically. Anyone looking for landlord concessions will probably want to check out Manhattan first for now. If and when the Fed cuts interest rates, however, we can expect to see a sizable increase in available rental inventory as buyers and sellers make their moves.

Median Price (Recorded Sales)

-7.9%
Quarter-Over-Quarter

+0.0%
Year-Over-Year

+9.3%
Quarter-Over-Quarter

+1.7%
Year-Over-Year

Median Price (Contracts Signed)

+3.8%
Quarter-Over-Quarter

+4.8%
Year-Over-Year

+1.2%
Quarter-Over-Quarter

+1.2%
Year-Over-Year

Source: Compass Q1 2024 Manhattan Market Report

Recorded Sale Prices (Overall)

Contracts Signed (Overall)

+8.6%
Quarter-Over-Quarter

-4.7%
Year-Over-Year

Average Recorded Sale Price by Type

+11.3%
Quarter-Over-Quarter

+2.6%
Year-Over-Year

Source: Compass Q1 2024 Brooklyn Market Report

Deep Dive: Congestion Pricing

The Metropolitan Transportation Authority (MTA) board has given its seal of approval to congestion pricing in Manhattan's central business district, marking one of the most momentous decisions in the city's transportation history. This long-debated measure, aimed at curbing traffic congestion, enhancing air quality, and bolstering public transit, represents a significant shift in urban transportation policy for New York City, underscoring the urgent need to address Manhattan's traffic gridlock, particularly in Midtown and Lower Manhattan, while also providing crucial funding for transit improvements.

Under the approved plan, vehicles entering Manhattan below 60th Street during peak hours (5 AM to 9 PM during the week and 9 AM to 9 PM on weekends) will face toll charges.

Passenger cars – Peak hours: $15. Off-peak hours: $3.75.
Trucks and buses – Peak hours: $24 or $36 depending on size of the vehicle. Off-peak hours: $6 to $9.
Motorcycles – Peak hours: $7.50. Off-peak hours: $1.75.
Taxi and green cabs – $1.25 will be added to every trip to, from, within, or through the zone.
Uber/Lyft/app-based service cars – $2.50 will be added to every trip to, from, within, or through the zone.

These fees are expected to generate significant revenue, projected at around $1 billion annually, which will be allocated towards enhancing the city's public transit infrastructure.

While congestion pricing aims to alleviate traffic congestion and reduce emissions, concerns have been raised regarding its potential economic impact and equity considerations. To address these concerns, certain vehicles, such as school buses, emergency vehicles, and government-owned transport, will be exempt from the toll charges. Moreover, efforts have been made to provide discounts for low-income individuals, ensuring that the burden of congestion pricing is distributed fairly across the city's population.

Despite the MTA board's resounding endorsement, congestion pricing still faces legal challenges and logistical hurdles. Several lawsuits have been filed, questioning the program's legality and potential adverse effects. Critics argue that congestion pricing may disproportionately impact certain communities, exacerbate economic disparities, and lead to unintended consequences such as traffic diversion to adjacent neighborhoods.

While the approval of congestion pricing represents a significant milestone, its full implementation hinges on overcoming legal obstacles and securing final approval from federal authorities. If these challenges are resolved expeditiously, congestion pricing could be rolled out as early as June, marking a transformative moment in New York City's transportation landscape.

City Spotlight: NYC Night Markets

April is the official start of Night Market season, and this year there are six distinct markets across the city. Each market has its own start date, its own style, and its own fare:

April 6th - Bronx Night Market
Runs the first Saturday of every month from April to October in Fordham Plaza. Expect literary activities, fresh produce, vegan food, and a concert series.

April 11th - Uptown Night Market
Runs the second Thursday of every month from April to October in West Harlem. This market showcases food, beverage, and merch from community talent.

April 13th - Queens Night Market
Runs every Saturday throughout the summer, beginning at 4 PM at the New York Hall of Science in Flushing Meadows Corona Park. Vendors will sell food, arts and crafts, vintage and antique items, and more.

April 19th - Latin Night Market
Runs the third Friday of the month from April to October in Upper Manhattan on Dyckman Street. This is more of an event than a market, celebrating food, music, and culture from Central and South America.

April 29th - Brooklyn Night Market
Runs the last Monday of the month from April to October at Industry City. Enjoy live music, as well as food and beverage offerings from all over the world.

May 7th - Vegan Night Market
Runs the first Tuesday of the month from May to October at Columbus Circle. This is only the second year for this market, which offers live music and vegan options from local vendors.

In Contract in Just 34 Days

1 BD   1 BA   900 SF   $899,000

Just off Park Avenue, this large and pin-drop quiet one-bedroom with home office offers the perfect mix of prewar charm and sleek modernism, a storage unit that transfers with the apartment, and the ability to install washer/dryer!

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

Available short term or long term, furnished or unfurnished.

Located in the heart of the Lower East Side, this expansive full-floor home offers unparalleled luxury living with exclusive elevator access, a private balcony, an in-unit washer/dryer, and a smart home system that controls surround sound, lighting, thermostat, blinds, and video intercom via your smartphone. Floor-to-ceiling windows showcase expansive city views while illuminating the open chef's kitchen, which is equipped with premium Miele appliances, Carrara marble countertops, and bespoke millwork.

1 BD   1 BA   750 SF   $599,000

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.

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.

Most Recent Mortgage Rates

Rates are from Citibank and are effective as of 04/15/2024. 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.

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 most reliable cleaning services to how to find a good coed softball league, it's as simple as sending me an email.

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

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.