Weekly Manhattan & Brooklyn Market: 5/15

Week of 5/15/23

SPRING RESURGENCE

Spring demand typically peaks around the end of March or the beginning of April, and this year followed that script. However, another rise in contract activity over the past two weeks nearly matches the peak from a month ago.

Typically, Summer is much slower than Spring, but a resurgence of demand this late into the season suggests the next few months may show higher-than-expected buyer activity.

It’s certainly worth noting that demand – i.e., the number of weekly contracts signed – has remained above its pre-pandemic average* for 14 consecutive weeks.

*The average weekly number of contracts signed during the period January 5, 2015 to March 1, 2020.

Manhattan Supply is still increasing on its way to the anticipated June peak. This week, supply increased from 7,388 to 7,447 units.

So far this year, Manhattan Supply has followed normal patterns and behavior. The chart below depicts the historical trends of Manhattan Supply, and 2023 is shaping up just like the rest.

In many national markets there is currently a low supply, which is asserting upward pressure on pricing. But, with NYC supply at 7,447 units and demand at 247 contracts, supply is not a factor in increasing the pricing needle.

Brooklyn Supply increased from 3,222 to 3,262 units this week. That number should also grow as the June peak moves closer.

As with Manhattan, the supply and demand ratio alone won’t raise prices, since there are far more units available than the 153 units needed to satisfy this week’s demand.

This week’s data has been added to the chart below and stays on track with Brooklyn’s typical bi-annual cycle. Manhattan’s data set shows a more pronounced cycle than Brooklyn's because it has more historical data to clearly illustrate the trend.

Manhattan Pending Sales: Like the supply “almanac,” the historical pending sales chart provides us with a very clear picture of what to expect. And as expected, the metric increased week-over-week from 3,011 to 3,059 units. The first and largest peak in June is almost here and if the trend continues, we can expect a smaller peak in December.

Brooklyn Pending Sales: The metric reached its seasonal trough in February just like Manhattan, and right on cue it reversed direction. This week, pending sales increased from 1,908 to 1,921 units, showing that Brooklyn is about to hit its first peak of the year in June — just as expected.

Manhattan Contracts Signed: At 247 contracts, the metric was once again well above its pre-pandemic average.

Brooklyn Contracts Signed: Brooklyn is peaking for the 6th consecutive time since the pandemic. In mid-January, the metric briefly touched the pre-pandemic average, which has become the metric’s support level for more than 2 years. Signed contracts have skyrocketed since then. This week, 153 contracts were signed.

New Development Insights

As reported by Marketproof, this week, 78 new development contracts were reported across 51 buildings. The following were the top-selling new developments of the week:

• 150 BARROW STREET (West Village) reported 8 contracts.
• ONE HIGH LINE (West Chelsea) reported 5 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

Our goal is simple: to humanize the world of real estate. Michael Rossi founded Elegran in 2008 on the dual premise of motivation and innovation, with a third sustaining principle added over the years: care. Unique in the industry as an independently owned brokerage with agents known as “advisors” and a data-centered approach, the firm has become a key player in the New York brokerage world. The exclusive NYC member of the invitation-only Forbes Global Properties network, Elegran oversaw well over $500 million in sales volume in 2019, tripled market share in 2020, and sold US $1B in 2021. Headquartered in the center of Manhattan, Elegran is solely dedicated to serving the incomparable needs of the New York City metropolitan region. For more information about Elegran, visit [www.elegran.com](http://www.elegran.com./).