Bright Spot: Mortgage Rates Decrease to 15-Month Lows

This past week, Manhattan and Brooklyn continued to show diverging trends in contract activity. Manhattan saw an 8% increase in contract volume compared to the previous week. However, the total number of contracts remained below 200—notably lower than the average for a non-holiday week in Manhattan.

On the other hand, Brooklyn experienced a slight 2.5% decline in contract volume, marking a continuing trend of decreased activity over the past few weeks. Despite Manhattan’s uptick, the combined results from both boroughs led to a marginal dip in the Elegran | Forbes Global Properties Consumer Sentiment Index, which fell from +19 to +18.

Inventory levels also followed a downward trend this week. Manhattan’s supply decreased by 1.5%, with only 180 new listings entering the market. Brooklyn mirrored this pattern with a 1.4% reduction in new listings, bringing 136 new properties to market.

In a positive development for buyers, mortgage interest rates have declined, reaching their lowest point in 15 months. This favorable shift could encourage potential buyers who have been waiting on the sidelines for more attractive rates.

Manhattan Supply

In the second week of August, the overall supply in Manhattan continued to decline as anticipated. This week, supply decreased by 1.5%, bringing the total to 6,248 units as 180 new properties came to market this week, 5% more than in the previous week.

Brooklyn Supply

Like Manhattan, Brooklyn's residential apartment supply decreased by nearly 1% week-over-week, with 3,182 units currently available for sale. This week only 136 new properties entered the market, representing a significant 15% decline compared to the previous week and the lowest non-holiday week total of the year.

Manhattan Pending Sales: After declining for the last four weeks, pending sales increased by 0.5% to 2,948 units this week.

Brooklyn Pending Sales: Unlike Manhattan, Brooklyn's pending sales continued to decrease, dropping by 1.3% to 1,890 units this week.

Manhattan Consumer Sentiment

This week, Manhattan’s score on the Elegran | Forbes Global Properties Manhattan Consumer Sentiment Index increased, rising from +2 to +9, as 196 contracts were signed, an 8% increase compared to the previous week.

Brooklyn Consumer Sentiment

The residential real estate market in Brooklyn experienced a slight decline in contract activity this week, with a total of 115 contracts signed—a modest 2.5% decrease from the previous week. As a result, the Elegran | Forbes Global Properties Brooklyn Consumer Sentiment Index dropped from +63 to +59.

New Development Insights 

Marketproof reported that 39 new development contracts were signed in 29 buildings this week. The following buildings were the top-selling new developments of the week:

- 520 Fifth Avenue (Midtown) and 87 Irving Place (Clinton Hill) each reported 4 contracts

- Hendrix House (Kips Bay) and The James (Clinton Hill) each reported 3 contracts.