Weekly Manhattan & Brooklyn Market Update: 11/4
Elegran | Forbes Global Properties October 27, 2024
Elegran | Forbes Global Properties October 27, 2024
The Manhattan and Brooklyn real estate markets are facing headwinds as mortgage rates have again surpassed 7%, jumping nearly 80 basis points since mid-September. Coupled with the uncertainty surrounding the upcoming election, market activity has softened, with some buyers and sellers opting to pause their plans.
In Manhattan, inventory decreased slightly, with 30% fewer new listings and 19% fewer signed contracts than the previous week. Brooklyn also experienced a downturn, with supply shrinking by over 1%, new listings dropping 30%, and signed contracts declining 14% week-over-week.
Consumer sentiment cooled this week, as evidenced by the Elegran | Forbes Global Properties Consumer Sentiment Index, which fell from +48 to +20.
For the week ahead, expectations remain cautious, with the election expected to dominate public focus. Nevertheless, there is room for optimism: buyer activity will likely rebound as the political landscape settles and interest rates decline. However, with supply projected to remain tight through the winter, the early spring market may become more competitive, driven by a rise in demand outpacing the replenishment of inventory.
Manhattan saw a slight decrease in supply this week, with 6,846 units currently available for sale. Only 241 new listings were introduced, causing overall inventory to decrease by 0.2% compared to last week. New listings also sharply declined, dropping 30% from the prior week and 32% year-over-year.
Data courtesy of UrbanDigs
Brooklyn’s supply also contracted this week, with 3,383 units currently available for sale, marking a 1.3% decrease from the previous week. Only 121 new listings came onto the market, reflecting a 30% drop from last week and an even steeper 49% decline compared to the same period last year.
Data courtesy of UrbanDigs
Contract activity in Manhattan slowed this week, with only 192 contracts signed—a nearly 20% decline from the previous week. Despite this drop, the number of contracts signed still represents a 28% increase compared to the same week last year. The Elegran | Forbes Global Properties Manhattan Consumer Sentiment Index declined from +21 to -1 this week.
Brooklyn saw a slowdown in contract activity this week, with only 136 contracts signed, marking a 14% decrease from the previous week. However, this figure is still 11% higher than the same week last year. The Elegran | Forbes Global Properties Brooklyn Consumer Sentiment Index fell from +105 to 77%.
New Development Insights
Marketproof reported that 54 new development contracts were signed in 41 buildings this week. The following buildings were the top-selling new developments of the week:
- The Huron (Greenpoint) signed 5 contracts
- One Wall Street (Financial District) and Monogram New York (Turtle Bay) each signed 3 contracts.
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