March 2024 Brooklyn and Manhattan Real Estate Newsletter

March 2024 Brooklyn and Manhattan Real Estate Newsletter

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Welcome to March!

This month’s edition includes my most recent market update along with research, articles and events I hope you’ll find of interest. Whether you’re considering a move or simply keeping abreast of the market, I hope you find this to be a handy guide for market information, news, and events.

Brooklyn Real Estate Market Snapshot

From a Brooklyn new listing standpoint, February was a relatively slow month. While new listings were up 1.1% on a year-over-year basis, they were down 0.7% from January. Weather may have contributed somewhat to the slower pace, but the overriding factor likely results from the high mortgage rates which have been a pervasive bottleneck on new supply in the market. It’s a bit too early to tell how the spring will unfold, but we should learn more as we head further into March.

While it’s hard to read much into a short timeframe, I have noticed a pick-up in new listing activity over the past couple of weeks with renewed focus by many of my buyers. Even though the current rate environment is not ideal, we’ve had positive news on inflation and the markets have started to price in rate cuts for later in the year. That should bode well for mortgage rates as 10 year treasury yields dipped following the inflation news and mortgages typically track that index.

Given continued strong demand relative to supply, we haven’t seen much in the way of market-wide price relief. Some sectors have been stronger than others but, for the most part, there hasn’t been the broad-based price declines some were expecting. Sectors that remained strong through recent market cycles should continue to see active bidding on properties with prices over asking.

With history as a guide, we should see more supply throughout the spring. Additionally, as has been the case for the better part of the past three years, we will likely also see strong demand with competition on prime properties and upward price pressure. Most of the properties I have either visited or discussed with clients over the past few weeks have disappeared with accepted offers within one or two weeks after coming to market.

Buyers waiting for price declines or attempting to negotiate discounts on newly launched listings may end up missing out on properties. The market has recently started to shift towards sellers and I expect that will continue through the spring. Nevertheless, while the market is shifting towards sellers, overpricing your home is not usually the best course of action. Even though demand is likely to remain strong, more inventory means more competition for your listed property. Most buyers I come across are smart and well-informed both from their online research and from working with their agent.

As a result, you don’t want your listing passed over by buyers focused on other properties that are better positioned in the market. Ultimately, that risks putting you in a position of having a stale listing with downward pressure on your asking price. In any event, those are my latest thoughts on the market. I hope you find them helpful. Please enjoy the articles, research and events I put together in this month’s newsletter and feel free to reach out for assistance or advice. I’m always happy to help.

All the best,