Brooklyn and Manhattan NYC Real Estate Newsletter for February 2024

Please click the image for the full newsletter, including research, news, events and more!

Welcome to February!

In this month’s newsletter I review the Brooklyn and Manhattan real estate markets and cover some of the latest trends, opportunities, and challenges. Whether you’re considering a move or simply keeping abreast of the market, I hope you find this update to be a handy guide for recent market information, news, and events.

Brooklyn Real Estate Market Snapshot

As of the beginning of February, Brooklyn had 2,898 properties for sale with 153 new listings in the past week and 714 over the past month. Supply increased by 1% compared to January, yet remains 12.7% lower on a year over year. Despite the 43.3% increase in monthly new listings, supply is still relatively tight in Brooklyn from a historical perspective.

With respect to demand, Brooklyn saw 412 contracts signed in the past 30 days, representing a 9.9% increase on a year over year basis. In the last week, there were 101 contracts signed representing a 21.7% uptick from the preceding week and suggesting robust demand.

According to our Q4 2023 Market Report, Brooklyn apartment sales experienced a 22% decline in sales on a year-over-year basis. A spike in mortgage rates to a 23-year peak in mid-October contributed significantly to the downturn. However, the recent dip in mortgage rates and positive economic indicators such as declining inflation and strong consumer spending offer reasons for optimism in 2024.

Manhattan Real Estate Market Snapshot

As of the beginning of February, Manhattan had 5,859 properties for sale, with 281 new listings coming to market in the past week. While weekly new listings increased by 4% from the prior week, supply remains constrained when viewed against historical standards. Demand has seen a gradual increase, with 639 contracts signed in the last 30 days. From a buyer/seller negotiating leverage standpoint, Manhattan appears to be in neutral territory.

As in Brooklyn, the Manhattan apartment market’s fourth quarter of 2023 was significantly influenced by rising mortgage rates likely contributing to the 2% decrease in closings from the previous year. Despite the challenges, the market showed signs of resilience with average and median apartment prices edging higher than in the fourth quarter of 2022.

NYC Open House Trends

January’s open house activities showed a promising uptick, likely spurred by an increase in inventory from December and favorable mortgage rates. While weather conditions have slightly dampened activity, the overall trend points to healthy engagement, with average attendance of 2.67 buying groups per open house.

Economic Highlights: A Promising End to 2023

The U.S. economy outperformed expectations in the fourth quarter of 2023, growing at a 3.3% annual rate. This positive momentum, coupled with a deceleration in inflation and strong consumer spending, suggests a promising outlook for the real estate market in the coming months.

Mortgage Rates Fall

Mortgage interest rates dropped on all loan terms from a week ago, according to rate data collected by Bankrate. Rates for 30-year fixed, 15-year fixed, 5/1 ARMs and jumbo loans all dropped. The average rate for a 30-year fixed mortgage for today is 6.91 percent, down 8 basis points over the last seven days. This time a month ago, the average rate on a 30-year fixed mortgage was higher, at 7.07 percent.

The Fed and Interest Rates

The Federal Reserve signaled on Wednesday that it’s is done raising interest rates but made it clear that it is not ready to start cutting. The Fed has been riding a wave of decelerating inflation, a strong labor market and solid economic growth, giving it both leeway to start easing up on monetary policy and caution about growth that could reaccelerate and drive prices higher again
Given the favorable economic backdrop coupled with strong property demand, the Brooklyn and Manhattan real estate markets appear poised for a promising first half of 2024. Best of luck out there! As you navigate the market, please feel free to reach out for assistance or advice. I’m always happy to help.

All the best,