Brooklyn’s Increase in Contract Volume Lifts Consumer Sentiment as Interest Rates Stabilize

This week’s market trends underscore the contrasting dynamics between Manhattan and Brooklyn against a backdrop of stabilizing interest rates. While Manhattan experienced a typical seasonal slowdown, Brooklyn’s strong week-over-week increase in contract activity boosted overall market sentiment.

The Elegran | Forbes Global Properties Consumer Sentiment Index rose from 0 to +10, propelled by Brooklyn. 

Meanwhile, steadying interest rates are bolstering buyer and seller confidence. As fluctuations diminish, the incentive to wait for further declines fades, encouraging more immediate engagement. This stability helps break the market logjam, fostering a more fluid environment for transactions moving into 2025.

Manhattan Supply

The supply of residential units in Manhattan decreased by nearly 3% during the first week of December, bringing the total to 6,113 properties. This aligns with typical seasonal trends as the market slows toward year-end. 

While there were 192 new listings following the Thanksgiving holiday week—a 111% week-over-week increase—this surge reflects a rebound from the prior week’s holiday lull. When removing last week’s anomaly, the pace of new listings remains slower compared to earlier in November, continuing the broader trend of declining supply. 

On a year-over-year basis, 12% more properties came to market this week than during the same week last year, signaling slightly higher activity than in 2023 but within the context of an overall seasonal slowdown.

Brooklyn Supply

Brooklyn’s residential supply fell by 3.3% during the first week of December, leaving 3,061 properties on the market. This decline aligns with typical seasonal trends as the market slows during the holiday season. 

Following Thanksgiving, 124 new listings came to market—a 51% week-over-week increase. However, this spike reflects a rebound from the prior holiday week’s dip rather than a sustained rise in activity. Excluding last week’s anomaly, the broader trend shows supply continuing to decrease. 

On an annual basis, new listings rose 7% compared to the same week last year, indicating a more active market than in 2023.

Manhattan Pending Sales: Pending sales in Manhattan decreased by 3.6% this week, totaling 2,878 units. This marks the first week-over-week decline in this metric since early October. Although pending sales often peak around this time of year, the recent strong contract activity during the late fall suggests this dip could be a temporary pause. Pending sales may increase further in the coming week before declining into the new year until the spring market arrives.

Brooklyn Pending Sales: Pending sales remained virtually unchanged at 1,970 units.

Manhattan Consumer Sentiment

As anticipated with the arrival of the holiday season, the number of contracts signed in Manhattan decreased by 9.2% week-over-week, totaling 167 contracts. The Elegran | Forbes Global Properties Manhattan Consumer Sentiment Index also mirrored this decline, dropping from -5 to -13. The decrease is similarly reflected on a year-over-year basis, with a 3% contraction in the first week of December compared to last year.

Brooklyn Consumer Sentiment

Unlike Manhattan, Brooklyn saw a notable increase in contracts signed this week, with 144 contracts—representing a nearly 46% week-over-week growth. This rise contributed to a significant increase in The Elegran | Forbes Global Properties Brooklyn Consumer Sentiment Index, which jumped from +28 to +87. More importantly, on a year-over-year basis, Brooklyn's residential market demonstrated its resilience and strength, showing an 8% increase.

New Development Insights 

Marketproof reported that 53 new development contracts were signed in 42 buildings this week. The following buildings were the top-selling new developments of the week:

- One High Line (West Chelsea) signed 3 contracts

- 1020 Hancock Street (Bushwick) signed 2 contracts.