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As we move through summer, the NYC real estate market continues to show signs of both challenges and opportunities. In this month's newsletter, we delve into the July 2024 market report, discuss the latest real estate news, and more. |
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| | As summer temperatures rise, the Manhattan real estate market is slowly heating up as well. Although the number of contracts signed in July 2024 was lower than in June, both the average and median sales prices saw significant increases month-over-month and year-over-year. Specifically, the average sales price in Manhattan rose by 14.5% month-over-month and 17.7% year-over-year, while the median sales price climbed by 6.3% month-over-month and 15.9% year-over-year. Still, while prices are going up, recent data shows a notable increase in the number of new listings priced below their previous sale prices. This shift indicates that buyers can still find favorable deals, particularly on properties purchased during the market peaks between 2014 and 2018, where many listings are now selling at a loss. A growing trend reveals an increasing number of properties listed below their previous sale prices, signaling a market adjustment that could benefit those looking to minimize downside risk while capitalizing on future price recoveries. Brooklyn's market, meanwhile, shows a different dynamic. The percentage of new listings priced below previous sale prices remains much lower than in Manhattan, underscoring the borough's strong value growth over the past decade. Despite market fluctuations, Brooklyn has consistently seen price increases, driven by sustained demand, making it less common to find properties selling at a loss. In Brooklyn, the average sales price increased by 12.7% month-over-month and 18.5% year-over-year, while the median sales price rose by 11.7% month-over-month and 17% year-over-year. Inventory levels remained relatively stable compared to June 2024, with only a slight 0.2% decrease, but showed a 2.5% increase year-over-year. This suggests that more homeowners are willing to sell despite the still higher than expected mortgage rates. The rise in sales prices appears to be motivating prospective sellers to list their homes. This trend is further supported by the decreasing average discrepancy between asking price and sales price, both month-over-month and year-over-year. Brooklyn's market remains strong, with limited supply compared to Manhattan. |
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| | | | | | | | Source: Compass July 2024 Manhattan Market Report |
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| | | | | | | | | | Source: Compass July 2024 Brooklyn Market Report |
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| | | The Manhattan rental market is seeing a trend where renters are paying more for less space. In July 2024, the average rent per square foot hit the second-highest level on record, even as the average size of newly leased apartments shrank for the 11th consecutive month. This trend isn't limited to Manhattan; Brooklyn and Queens are experiencing similar dynamics. Despite these rising costs per square foot, there are signs that rents may be starting to peak. Inventory continues to rise, with fewer bidding wars driving up lease prices. In July, 21% of rental listings went into bidding wars compared with 24% in June. Still, lease signings surged by 54.3% compared to July 2023, while listings increased by 44.1%. The median rent in Manhattan dropped slightly by 2.3% year-over-year to $4,300, but remained nearly unchanged from June. In Brooklyn, lease signings reached a record high, with a 300.8% increase from July 2023. Median rents fell by 9% year-over-year to $3,563. The average size of a rental fell for the 10th month, and the average rent per square foot increased by 2%. The average square footage in July was down a little more than 7% year-over-year. As interest rates are expected to decrease, some pressure may ease in the NYC rental market, potentially leading to further adjustments in both pricing and inventory levels. |
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| | The Federal Reserve's anticipated rate cuts are finally taking shape, alongside a decline in mortgage rates, fueling hopes for an increase in buyer activity. Recent economic data has ramped up pressure on the Fed to lower rates. Investor concerns about a potential recession led to a drop in share prices, and with inflation hovering just above 2% and unemployment reaching 4.3%, the Fed's strategy of maintaining higher rates may have missed the mark on achieving a "soft landing." Mortgage rates, which are influenced by the 10-year treasury yield, often move in tandem with the Fed's decisions. Even the mere anticipation of a rate cut has already driven mortgage rates to a 15-month low following the latest jobs report. The Fed began raising interest rates in spring 2022 to combat inflation, which simultaneously pushed mortgage rates higher and cooled the booming housing market. Buyers relying on loans found themselves priced out, and homeowners hesitated to sell, reluctant to give up their low mortgage rates. Although the Fed paused rate hikes last July, inflation has kept it from making the expected rate cuts. This has led to a sluggish housing market. However, the Fed's next meeting on September 18 could mark a turning point, potentially leading to the first rate cut since the pandemic began in 2020. “For the whole market to be on the edge of its seat for even a 50-point basis reduction is significant,” Phil Crescenzo, a regional executive at National One Mortgage Corporation, said. He added that while a rate cut may not provide substantial relief for borrowers, it would boost consumer confidence after a prolonged period of high rates. The economic outlook remains mixed, with experts divided on the severity of the latest data. Some warn of a looming recession, while others downplay investor concerns as an overreaction. Mortgage banker Melissa Cohn highlighted the global impact, noting a "meltdown in equities" and suggesting that the economy may be in worse shape than the Fed has acknowledged. She anticipates that the recent weak jobs report could push the Fed toward a more significant rate cut than initially projected. Redfin economist Chen Zhao echoed this sentiment, suggesting that the Fed might accelerate its timeline for rate cuts, possibly completing a year’s worth of reductions in just six months. This could lead to a quicker than expected recovery in the housing market. An influx of buyers creates more competition and drives up home prices, especially given the lack of inventory in most residential markets. This creates a short-term risk where rising home prices might offset the benefits of lower rates. Despite some recent improvement, inventory levels haven't fully recovered and remain below what many consider normal. Boosting inventory will likely depend on new home construction and sellers re-entering the market after the typically slower summer season. However, some expect this may not happen until next year. As the market watches and waits, the Fed’s next move could set the stage for a pivotal shift in the real estate landscape. |
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| Get ready to indulge in New York City's culinary delights! The summer edition of NYC Restaurant Week is here, offering prix fixe specials at more than 600 participating restaurants across the city. From now through August 18, you can enjoy brunch, lunch, and dinner at price points of $30, $45, and $60. Whether you're looking to try a new spot or revisit a favorite, make your reservations now and savor the best of NYC's vibrant food scene. Click here for more information. |
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| 376 President Street, Unit 1B |
| 2 BD 3 BA 1,367 SF $1,665,000 |
| Discover the late Victorian industrial charm of Carroll Gardens in this highly unique two-bedroom, three-bath condo at the iconic Mill Building. Brimming with vintage factory details, this expansive sunlit unit boasts an open Northern exposure and the kind of inviting warmth and soul you simply can’t find in a new build. |
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| | | | 1 BD 1 BA 750 SF $590,000 |
| 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. |
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| 251 East 32nd Street, Unit 5J |
| 1 BD 1 BA 775 SF $599,000 |
| This recently renovated home is sunny, spacious, remarkably quiet, and boasts ample closet and storage space. Featuring wide-plank white oak floors and charming views of townhouse gardens through expansive windows, the apartment exudes a bright and cheerful atmosphere. |
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| | | 440 East 79th Street, Unit 14G |
| 1 BD 1 BA 750 SF $599,000 |
| This well thought out apartment has been optimized with its thoughtful open kitchen and bar-stool countertop seating arrangement. The apartment begins with a pleasant entry foyer comprised of 3 closets in total including: coat, storage, and pantry (storage closet is a semi walk-in with organizers and shelving). The open kitchen features white cabinetry, sleek black quartz countertops, and full-size stainless steel appliances. |
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| 265 East Houston Street, Unit 7 |
| 2 BD 2 BA 1,400 SF $9,995/month |
| Available short term (three months minimum) or long term, furnished, unfurnished, or partially furnished.
Ideally located in the heart of the Lower East Side, this expansive seventh-floor loft-style home offers unparalleled luxury living. |
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| | | 174 East 74th Street, Unit 10G |
| 2 BD 1 BA 850 SF $799,000 |
| With approximately 850 square feet of living space, this inviting home boasts east-facing windows that bathe the interior in sunshine throughout the day, offers abundant closet space, the ability to install a washer/dryer, and an incredibly low-maintenance, all in a full-service coop ideally positioned west of Third Avenue. |
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| 88 Lexington Avenue, Unit 1003 |
| 2 BD 2.5 BA 1,541 SF $12,500/month |
| Available October 1, 2024. This luxurious east-facing split two-bedroom, two-and-a-half-bathroom home features oversized windows with open views, ceilings over 10 feet high, an in-unit washer/dryer, a separate office area, and central AC, all a building with more than 10,000 square feet of amenities. |
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| | | Perfect for an investor or end user. Tenant in place paying $7,750/month. 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. |
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Most Recent Mortgage Rates |
| | Rates are from Citibank and are effective as of 08/13/2024. 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 best outdoor dining spots to the top summer concerts and festivals, it's as simple as sending me an email. |
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| | Licensed Associate Real Estate Broker |
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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. |
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