Week of 10/23

Optimism Resurfaces in NYC Real Estate

And just like that… consumer sentiment returns to positive territory. Following a lackluster summer, data delays and global crises, this week, the city's resilience shines through.

As we delve into this week's market update, it's evident that NYC’s historic trends are reemerging. The market is on its seasonal upswing, driven in part by increased Fall inventory. We're on track for the year's second, albeit smaller, peak in demand, projected to hit late November or early December.

Our Elegran | Forbes Global Properties NYC Consumer Sentiment Index  registers a +14 this week, signaling that attitudes toward NYC residential real estate are now 14% more favorable than the pre-pandemic benchmark. This index, meticulously adjusted for seasonality and indicator lag, stands as the most accurate reflection of consumer sentiment available. Importantly, Manhattan and Brooklyn offer differing narratives, with Manhattan's sentiment fluctuating throughout the year, while Brooklyn's remains consistently high since July 2020. 

Let’s jump to the data!

Manhattan Supply

Manhattan's supply of residential properties has undergone a significant transformation. After hitting a low point in early September, it has grown, and this upward trend is expected to continue over the next few weeks. However, what sets Manhattan apart is its larger number of available properties compared to demand. Currently, there are 7,316 units available for just 186 units in demand, highlighting the city's unique real estate landscape, where ample supply may not necessarily drive up prices as it might in other markets.

Brooklyn Supply

Brooklyn's residential property supply has followed a familiar pattern, hitting its lowest point in early September and steadily increasing. This trend is projected to reach its peak later this month. Similar to Manhattan, Brooklyn boasts an excess of available units compared to the current demand, with 3,322 units available against 117 units in demand. This level of supply in Brooklyn underscores the unique dynamics of its real estate market, where a surplus of options provides opportunities for prospective buyers and potentially stabilizes prices amidst changing market conditions.

Manhattan Pending Sales

Manhattan's pending sales have exhibited a distinctive pattern over the years. These sales reached their peak in July, experienced a dip last week, and are now on the rise, heading towards the year's second but smaller peak expected in late November or early December. This week, Manhattan recorded 2,616 pending sales. This fluctuation in pending sales activity reflects the city's dynamic real estate market, where demand waxes and wanes in response to seasonal and economic factors.

Brooklyn Pending Sales

In Brooklyn, pending sales have mirrored a pattern similar to Manhattan's. They reached their peak in July, experienced an anticipated dip last week, and are now steadily on the upswing as we approach the year's second, but smaller, peak projected for late November or early December. This week, Brooklyn recorded a total of 1,888 pending sales. 

Manhattan Consumer Sentiment

This week, it made a notable shift, rising from -21 to +1, marking its first entry into positive territory in seven weeks. The sentiment index, which measures attitudes towards Manhattan residential real estate, has displayed mixed signals throughout the year. Notably, this week saw the signing of 186 contracts, up from 151 the previous week. Manhattan's improving consumer sentiment aligns and resilience sets it apart from many other markets across the nation experiencing slower real estate activity. 

Brooklyn Consumer Sentiment

Brooklyn's consumer sentiment, while slightly sliding from +54 to +50 this week, maintains strength well above pre-pandemic levels. This persistent positive sentiment, which has remained robust since July 2020, underscores the borough's consistent allure. This week, 117 contracts were signed, showing that Brooklyn's real estate market remains vibrant, despite a minor dip. It's a testament to the enduring appeal of Brooklyn's real estate, reflecting both its stability and long-term potential for buyers and investors.

New Development Insights 

Marketproof reported that 44 new development contracts were signed in 35 buildings this week.  The following buildings were the top-selling new developments of the week:

• ONE11 RESIDENCES (Midtown) — Reported five contracts.

• 1289 LEXINGTON (Carnegie Hill)
• THE OSLO (East Harlem)
• ONE ESSEX CROSSING (Lower East Side)
• 300 WEST 30 STREET (Chelsea)
• 46 KOSSUTH PLACE (Bushwick) 

Each reported two contracts.

If you would like to chat about the most recent market activity, feel free to contact us at info@elegran.com or connect with one of our Advisors.

About Us

Welcome to Elegran, where our mission is to revolutionize the world of real estate. Founded in 2008 by Michael Rossi, our journey began with an unwavering drive for motivation, innovation, and a genuine care for our clients.

As an independently owned brokerage, we pride ourselves on our elite team of "advisors," offering a personalized touch that goes above and beyond the traditional real estate experience. Armed with robust data insights, we empower our clients to make informed decisions that lead to success.

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