Elegran Insights: Weekly Manhattan & Brooklyn Market Data For The Week of 05/24/21
This week was a momentous one for NYC as the city began to fully reopen. The sense of relief was palpable and the energy was real. Coupled with beautiful weather, NYC was alive and well — and this energy certainly carried over to the real estate market. A surge of new inventory came on the market in Manhattan this week, bucking typical seasonality when new listings decrease heading into Memorial Day. Over 600 new sales listings came on the market in Manhattan this week, nearly double the amount compared to the same week in 2019. Contract activity, for the fifth week in a row, remained at nearly 400.
Brooklyn too saw an uptick in new inventory this week with over 350 new listings, a 25% increase from last week and more than 2X the same week in 2019. Demand in Brooklyn is holding strong as well with four weeks in a row with contract activity hovering around 250 per week, well over double the contract volume during the same period in 2019.
Given the uptick in new inventory in Manhattan, the Market Pulse dropped slightly from 0.72 to 0.71 while in Brooklyn it remains at 1, indicating parity between pending sales [units in contract] and supply.
Manhattan Supply increased by nearly 5% this week to 7,390 as 634 new units came to market. This week’s new supply is 53% higher than last week and 98% higher than the same week in 2019. More new units came to market this week than in any week since 2018. Based on seasonal trends, typically new supply begins to decrease as we head into the Memorial Day Weekend, usually the bookend on the spring listing season. However, as much of the past year has bucked seasonality, and given the continuing strong buyer activity and the reopening of NYC, it’s not surprising to see an increasing number of seller’s come to market now to strike while the iron is hot.
Brooklyn Supply increased nearly 2% to 3,371 units for sale as 359 new units came to market. This week’s new supply is 27% higher than last week and 209% higher than the same week in 2019. The same story is holding true for Brooklyn, where as COVID restrictions are easing, and people are getting vaccinated and feeling safer, sellers are coming to market to capitalize on the current opportunities.
Manhattan Pending Sales increased 4% this week to 5,121 setting a new record.
Brooklyn Pending Sales increased 3% to 3,320.
Manhattan Contracts Signed - 395 contracts were signed this week, a 1% increase from last week and a 83% increase from the same week in 2019.
Brooklyn Contracts Signed - 240 contracts were signed this week, a 4% decrease from last week and a 209% increase from the same week in 2019.
Manhattan Weekly Contract Activity Analysis - Of the contracts signed this week, and based on the last asking price, the median price was $1.2M and the median size was 1,200 square feet.
Brooklyn Weekly Contract Activity Analysis - Of the contracts signed this week, and based on the last asking price, the median price was $995K and the median size was 1,065 square feet. This week the median price rose while the median size decreased, suggesting that more expensive, but smaller apartments were contracted this week compared to in prior weeks.
The Manhattan Rental Market continues to improve and renters are shopping around for the best deal. This week, nearly 987 new leases were signed, 62% higher than last week and 94% higher than the same week in 2019. Overall supply continues to decrease, now at about 6,800 units for rent as rental demand is buoyed by a reopening city and an impending return to the office. Landlords continue to decrease the concessions offered and tenants renewing their rents are starting to face rent increases after receiving an artificial discount last year. Tenants faced with rising renewal rents are shopping around to see if they can secure a more favorable deal in a new building or location, which is contributing to the above-average leasing activity recently. The market is expecting continued activity in the rental market through the summer, buoyed by those returning to the office and heading off to college.
New Development Insights
As reported by Marketproof, 120 new development contracts were reported this week, a nearly 50% increase from the 81 contracts reported last week. Brooklyn was busy yet again accounting for 62 of the new contracts while Manhattan accounted for 45 of them. Interestingly, 12 contracts were signed for studios this week, an increase from recent averages and 48 contracts were signed for 2-bedrooms. Contract activity for 3 and 4+ bedroom apartments remained quieter this week.
The following were the top selling new developments this week:
- 111 Montgomery in Crown Heights reported 9 new contracts signed.
- The Rutland in Prospect Lefferts Gardens reported 8 new contracts.
- Hero in Long Island City reported 7 new contracts.
- 11 Hoyt Street in Downtown Brooklyn reported 6 new contracts.
- 127 Putnam Avenue in Bedford Stuyvesant reported 4 new contracts.
Please contact me if you would like to learn more about these, or other new developments.
We will continue sharing the Elegran Insights data analysis with you every week.
If you are interested in learning more about what is possible in today’s market and what the data means for you, I am available for a confidential complimentary assessment and consultation.