Feb 2024 Newsletter

Today In Real Estate

While the overall market stats for February show a positive turn, activity on the ground still feels lower than anticipated going into the year. Contracts signed are up (with a surprisingly strong showing in the Upper East Side), suggesting a rebound from last year's lows.  

We are all eagerly anticipating what March will bring in terms of inventory and interest rates, but we continue to be optimistic for the late Spring.  Read on for the full story -- until next time!

Manhattan Snapshot

While inventory and contracts signed were up in Manhattan, the real story to emerge in February was the dominance of the Upper East Side. Not only were contracts up (despite less inventory), the area had the highest share of luxury contracts (over $5M), interestingly made up of an equal share of coops and condos.  Midtown similarly saw a rebound after a particularly tough 2022-23, while Downtown saw a more modest increase in contracts signed (2%) with a much larger (+15%) influx of inventory compared to this time last year.  Both contracts and new inventory on the Upper West Side were actually down marginally for the same time period.

1,424

New Listings
+27.6% M-o-M
+8.2% Y-o-Y

887

Signed Contracts
+24.1% M-o-M
+8.6% Y-o-Y

Open house activity in Manhattan averaged 2.1 - 2.6 visitors each week; much higher than we had been seeing for most of 2023, though the numbers trended downward throughout the month, likely corresponding with disappointment over rising interest rates. 

$1,265

Median Sold PPSF
-4.1% M-o-M
-9.5% Y-o-Y

$1.02M

Median Sale Price
-8.9% M-o-M
-2.9% Y-o-Y

The number of closings and closed sale prices in February trended down which tracks with seasonal expectations since they represent deals negotiated in November/December.

Brooklyn Snapshot

The Brooklyn market remains mired in an inventory shortage with new listings in February barely seeing any uptick compared to January and pretty much even with February last year. Monthly new inventory in Brooklyn has been below historical averages every month since June of 2022, and there is currently no indication this will change anytime soon.

704

New Listings
-0.7% M-o-M
+1.1% Y-o-Y

507

Signed Contracts
+17.6% M-o-M
+10.9% Y-o-Y

Despite this lack of inventory, signed contracts were up double digits compared to both January AND February of last year, indicating that buyers are still active and ready to snatch up any inventory they can find. 

$963

Median Sold PPSF
-1.5% M-o-M
+10.8% Y-o-Y

$953K

Median Sale Price
-3.1% M-o-M
+3.3% Y-o-Y

While buyers are out and ready to transact, they do not seem to be paying massive premiums as closed sale prices remained essentially even compared to January and up modestly from this time last year.

Mortgage Rate Update

3/20

Next Fed Meeting

3/8

Next Jobs Report

Despite initial hopes for imminent rate cuts, the Fed's meeting on the January 31st revealed a more cautious approach which drove mortgage rates back up.  The upcoming Jobs Report, scheduled for later this week, will provide a crucial insight into the economy's health ahead of the Federal Reserve's meeting on March 20th. Any indications of robust job creation or weakening employment conditions could sway the Fed's decision on interest rates, potentially impacting market sentiment and economic outlook in the months ahead.

6.25%

Lowest Rate | February 1

6.625%

Highest Rate | February 23

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

The median asking price in NYC was $1.095M in January, up 11.7% from a year ago, due to higher priced homes (specifically the luxury sector over $5M) taking longer to sell and thus making up a higher percentage of the active inventory. 
(STREETEASY) 

Manhattan rents rose for the first time in three months in January, reaching a median $4,150 while setting a record for price per square foot. Although the median rent reached its peak, we've noticed the demand hasn't reached the same crazy levels we saw during 2022. 
(MANSION GLOBAL)

January started with high hopes, and is ending on the same note with a palpable sense of anticipation. Though there has not been much relief on inventory constraints, buyers seem ready to dive into the market after 18 months on the sidelines. 
(NY TIMES)


Mortgage rates, which peaked again at the end of February due to adjusted expectations about Federal Reserve rate cuts and strong economic indicators, are forecasted to dip below 7 percent by the end of the month, ultimately trending down to around 6 percent as inflation cools and the Fed begins to cut rates.
(BANK RATE).

Compass is the #1 Brokerage based on total transactions and closed sales volume in New York City, the #1 brokerage by total transactions in Manhattan, and the #1 Brokerage on total transactions and closed sales volume in Brooklyn. 
(REAL DEAL)

Check out our latest video here and tune in to the next installment on Thursday at 2PM EST. 

Curated Collection

Explore a collection of favorite new listings with wow-factor views.

Listings & Recent Sales

1 Hanson Place #13E

ON THE MARKET

STUDIO   1 BA   $599,000

202 Broome St, #10F

ON THE MARKET

2 BD   2 BA   $1,995,000

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   3 BA   $3,950,000

283 President St, #3

JUST SOLD - BUYER REP

3 BD   2 BA   $2,522,813

1199 Park Ave, #12H

JUST SOLD

2 BD   2 BA   $1,365,000

Hear it from our clients! 

"Isil and her team helped us with what would have been a rather stressful and difficult sale had it not been for her help. She guided us from start to finish with the listing process and was very dedicated and professional, and had amazing finishing touches for the apartment and the listing. She also handled a lot of the behind the scenes wrangling for us and had contacts with all the other necessary players in the process such as lawyers, movers, and contractors, which further helped. All in all a 10/10 A+ experience with an outstanding and excellent broker." 

– Jorge, a Chelsea Co-op Seller

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.