Summer's Real Estate Heatwave: NYC Market Sees Hot Demand, Defying Traditional Summer Slump

Bucking the typical trend of slow summer activity, the real estate market this season is surprisingly robust with surges in demand that have surpassed traditional expectations.

According to the Elegran | Forbes Global Properties NYC Consumer Sentiment Index, the consumer sentiment towards New York City residential real estate is at an impressive +34 this week, up from +23 just last week. This signifies that the current attitude towards NYC's residential real estate sector is 34% stronger than the pre-pandemic period*.

Remarkably, this surge of positive sentiment has been a constant for the past 27 weeks, briefly interrupted by a minor dip three weeks ago. Despite the potential volatility that the revival of global travel might introduce, we remain optimistic about the continuous strong demand for NYC residential real estate as we transition into the fall.

This summer is not just about sunshine and vacations - it's about a residential real estate market that is blooming. Whether you're a buyer, seller, or just an observer, there's no denying the warmth of this real estate summer. Let's dive in and explore the data that's heating up this week's market.

* January 5, 2015, to March 1, 2020

Manhattan Supply

This week, the supply in Manhattan's residential real estate market exhibited a predictable decrease from 6,879 to 6,795 units, aligning with historic summer trends. This trend is moving us steadily toward an anticipated low point in September. Given the current supply count and a peak weekly demand of roughly 400 contracts, supply isn't expected to significantly impact prices. 

While we are on the descent of the supply curve, it's important to remember that summer is traditionally a quieter season for new property listings. However, the heatwave of demand has made this an unusual summer. So, keep an eye on the market as it navigates through these interesting times.

Brooklyn Supply

In Brooklyn, the supply trends this week fall neatly into the historic patterns we've been observing. We saw a slight dip in supply from 3,242 to 3,216 units, mirroring the normal ebb and flow associated with the summer season. The supply continues its journey towards a late summer trough.

Analyzing the supply-demand ratio, we don't expect an impact on pricing in the near term. The current supply far outstrips the maximum weekly demand of approximately 200 units.

Despite the summer typically being a less active period for new listings, the resilience and robustness of demand in Brooklyn remain high. As we sail through this season, it's more important than ever to stay abreast of the market trends in this ever-vibrant borough.

Manhattan Pending Sales

This week's data reveal a minor decline in Manhattan's pending sales, going from 3,271 to 3,177 units. Historically, this trend is not unusual; we typically witness the first of two annual peaks occurring in June, followed by a decrease that bottoms out in October.

As summer progresses, the current pending sales figures are in line with these annual rhythms. The slight downturn is a normal part of the sales cycle, and despite the dip, the strong demand witnessed this summer suggests a healthy market.

Brooklyn Pending Sales

Brooklyn, much like Manhattan, is observing a typical trend with pending sales. Numbers slightly decreased from 2,212 to 2,199 units this week, in sync with the expected seasonal slowdown.

This summer dip is just the regular ebb and flow we see in the real estate market each year, and it demonstrates the resilience and robustness of Brooklyn's real estate market, even during traditionally quieter periods. 

As we watch these standard seasonal trends play out, it's crucial to remain aware of the broader context – a summer of unexpectedly high demand that continues to keep the market vibrant. With the fall season just around the corner, the market is still full of potential for those watching closely.

Manhattan Consumer Sentiment

Consumer sentiment in Manhattan is holding steady and displaying a positive trend. This week, the Elegran | Forbes Global Properties Manhattan Consumer Sentiment Index recorded a score of +7, a small but significant increase from last week's +4. This indicates that attitudes towards Manhattan's residential real estate are now 7% stronger than the seasonally adjusted pre-pandemic average.

Despite a year of mixed sentiment, the current score showcases a welcome positivity. With 178 contracts signed this week, the numbers reflect an upward trend.

This is further evidence of the remarkable resilience of Manhattan's real estate market amid changing global conditions. As we continue through an unpredictable summer season, this positive sentiment underscores the robust nature of the Manhattan market, offering reassurance and a promise of stability.

Brooklyn Consumer Sentiment

Brooklyn is stealing the show with a spectacular surge in consumer sentiment. This week, the Elegran | Forbes Global Properties Brooklyn Consumer Sentiment Index climbed to an impressive +99, up from +73 last week. This represents a sentiment that is not just stable but double its seasonally adjusted pre-pandemic average.

Brooklyn has been riding a wave of positive sentiment since July 2020, and this week is no exception with 148 contracts signed. The robust score reaffirms the borough's magnetic pull and the remarkable resilience of its residential real estate market.

This summer has seen an influx of demand, making Brooklyn a hotspot of activity. As we navigate through the remaining summer weeks, Brooklyn continues to be an exciting watch in the NYC real estate landscape.

New Development Insights 

As reported by Marketproof, this week, 67 new development contracts were reported across 46 buildings.  The following were the top-selling new developments of the week:

• BROOKLYN POINT (Downtown Brooklyn) reported 5 contracts.
• CLAREMONT HALL (Morningside Heights) reported 4 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.

Distinguished as the exclusive member of the invitation-only Forbes Global Properties network in NYC, Elegran proudly stands at the forefront of excellence. This exclusive partnership broadens our horizons, enabling us to connect buyers, sellers, and investors with extraordinary luxury properties not only in New York City but across the globe.

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