Weekly Manhattan & Brooklyn Market Update: 8/26

Elegran | Forbes Global Properties August 24, 2024

End of Summer: Supply and Contract Activity Drop

With buyers and sellers enjoying the last days of summer, the NYC real estate market slowed this week. Overall supply, new-to-market inventory, and contract activity all decreased.  

On the supply front, Manhattan's inventory has dropped below 6,000 units for the first time since late February, while Brooklyn's inventory is nearing 3,000.  Only 140 new listings came to market this week in Manhattan, the second-lowest weekly total of the year.  However, inventory will pop after Labor Day when new-to-market inventory rushes on for a shortened fall active season.

Manhattan’s contract activity dipped by 10% this week, following a 10% rise the previous week, with 193 contracts signed.  Meanwhile, Brooklyn saw a modest 2% decline after a 10% increase last week, still achieving a solid late-summer performance with 124 contracts signed. The Elegran | Forbes Global Properties Consumer Sentiment Index reduced slightly from +26 to +24. 

As the market readies for fall, here’s some advice: 

Sellers: Now is the time to prepare if you’re aiming to come to market this Fall. The Fall’s active season is short, peaking from mid-September to mid-November, so it’s crucial to price your home realistically from the start. Avoid aspirational pricing—capitalize on the first 30 days to maximize exposure. If the market isn’t responding, adjust quickly to maximize this limited window before the seasonal [winter] slowdown.

Buyers: Summer offered some deals, but inventory is tightening, and leverage is shifting back toward sellers. Negotiability is low, with discounts often under 5% of asking prices. If you find a good deal, act on it—don’t wait for better terms. With 2025 on the horizon, decreasing mortgage interest rates, and potential shifts in the market, taking advantage of current opportunities could be wise for long-term gains.

Manhattan Supply

Overall inventory continues to decline, with the number of units for sale dropping by nearly 3% to 5,940. Supply is now below 6,000 units for the first time since the end of February, but this low is expected to be short-lived as we expect a wave of new listings immediately following Labor Day. This week saw a 23% decrease in new listings compared to the previous week, as only 140 properties were added to the market.

Data courtesy of UrbanDigs

Brooklyn Supply

Brooklyn's residential housing supply decreased by 1% overall this week, bringing the total number of available properties for sale to 3,143. While new supply is expected to come to market after Labor Day, only 127 properties came on the market this week, a 22% decrease compared to the previous week.

Data courtesy of UrbanDigs

 

Manhattan Pending Sales: Pending sales declined slightly this week, decreasing by 15 to 2,937 units. 

Brooklyn Pending Sales: Pending sales declined less rapidly this week than in the previous five weeks, dropping by only eight units to 1,847 units.

Manhattan Consumer Sentiment

This week, Manhattan's score on the Elegran | Forbes Global Properties Manhattan Consumer Sentiment Index declined from +18 to +8 as only 193 properties were contracted, a 10% drop from last week.  

Brooklyn Consumer Sentiment

Contract activity in Brooklyn's residential market saw a slight decline this week, with 124 contracts signed, representing a 2% decrease compared to the previous week. This decrease is reflected in the Elegran | Forbes Global Properties Brooklyn Consumer Sentiment Index, which fell from +74 to +70.

New Development Insights 

Marketproof reported that 58 new development contracts were signed in 44 buildings this week. The following buildings were the top-selling new developments of the week:

- The Solaire (Battery Park City), and Smithsonian Place (Harlem) each signed 3 contracts.

- Bergen Brooklyn (Boerum Hill), and Kensington Manor (Kensington) each signed 3 contracts.

Let's Work Together

Her experience, expertise, and engaging personality make Sonal the perfect combination of advisor, advocate, and strategist. She is the proud owner of several NYC properties and a skilled negotiator with a deep understanding of people and sharp instincts about market trends.