Weekly Manhattan & Brooklyn Market Update: 9/2
Elegran | Forbes Global Properties August 31, 2024
Elegran | Forbes Global Properties August 31, 2024
As expected, the NYC real estate market quieted down in the lead-up to Labor Day Weekend. Contract activity in both Manhattan and Brooklyn dipped, approaching near year-lows. However, importantly, both boroughs managed to outpace last year’s performance for this same week, with Manhattan seeing a 5% increase in contracts and Brooklyn a notable 14% rise.
Given the above, the Elegran | Forbes Global Properties Consumer Sentiment Index decreased from +24 to 0, meaning this week’s consumer sentiment was equivalent to the pre-pandemic average.
Meanwhile, overall supply continued its downward trend. Manhattan recorded the second-lowest number of new listings this week, while Brooklyn saw the lowest all year.
Looking ahead, we anticipate a significant return of inventory in the weeks immediately following Labor Day. As buyers re-enter the market, bolstered by the influx of new listings and lower mortgage interest rates, transaction volume is expected to pick up in the second half of September as buyers take the time to assess the fresh inventory.
This week, overall inventory continued to decrease, with the number of available units dropping by 1.8% to 5,832. New listings also saw a further decline, down 4% from last week’s significant 23% decrease, resulting in only 134 properties coming onto the market—the second-lowest count this year. However, there’s no need for concern. We anticipate a surge in new inventory following Labor Day, with supply expected to rebound as we move into the fall season.
Brooklyn’s overall supply experienced a 1.9% decline this week, bringing the total number of properties for sale down to 3,084. New-to-market listings also saw a significant drop, with 10% fewer properties coming onto the market than last week—only 114 new listings, marking the lowest weekly count of the year. Similar to the trend in Manhattan, we anticipate a resurgence of new inventory hitting the market after Labor Day.
As anticipated in the lead-up to Labor Day, contract activity declined this week, dropping 22% from last week, with only 150 properties entering contract. Despite this drop, it’s worth noting that this figure is still 5% higher than the same week last year, highlighting the ongoing resilience of the market. Consequently, the Elegran | Forbes Global Properties Manhattan Consumer Sentiment Index shifted from +8 to -14. We expect the upcoming week to be relatively quiet in terms of contract activity, with a likely rebound later in September as buyers absorb the influx of new listings.
Brooklyn mirrored Manhattan’s trend this week, with contract activity declining by 17% compared to last week, as only 103 contracts were signed. Despite this dip, the number of contracts signed is still 14% higher than during the same week last year, highlighting the market’s sustained strength. The decline in residential contracts led to a decrease in the Elegran | Forbes Global Properties Brooklyn Consumer Sentiment Index, which dropped from +70 to +43. As with Manhattan, we anticipate next week to be quieter for contract activity, with a rebound expected later in September as buyers begin to absorb the new supply.
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.
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