Week of 8/28/23

Despite 7.5% mortgage rates, consumer sentiment remains positive

Although it was down from +23 last week, the Elegran | Forbes Global Properties NYC Consumer Sentiment Index (below) remains well into positive territory, registering a score of +18 this week.  This means that the attitude towards NYC residential real estate is 18% stronger than during the pre-pandemic period.

By borough, Manhattan’s consumer sentiment score is trending at neutral, while the attitude towards Brooklyn has been decisively positive, almost without exception, since July 2020.

Manhattan Supply

This week, as expected, supply decreased from 6,312 units to 6,208 units, on its way toward a low point next month.  Why is the supply count important?  Because low supply – such as is currently the case with many national markets – can assert upward pricing pressure.  But, with supply at 6,208 units and a maximum weekly demand of ~400 contracts, supply should not be a factor in increasing the pricing needle.

Brooklyn Supply

Brooklyn supply also exhibits a bi-annual cycle, although it is not as apparent without Manhattan’s depth of historical data to clearly illustrate the trend.   This week, supply decreased from 3,087 to 3,041 units as it heads toward a trough next month.  The supply-demand ratio alone should not raise prices since there are far more units available than what’s needed to satisfy a maximum weekly demand of ~200 units.

Manhattan Pending Sales

Like the supply “almanac,” the historical pending sales chart provides a clear picture of what to expect, with the first of two annual peaks typically occurring in June.  The metric decreased this week from 2,989 to 2,938 units and should trough in October.

Brooklyn Pending Sales

Like Manhattan, pending sales in Brooklyn recently reached the first of two annual peaks.  The metric decreased from 2,059 to 2,026 units this week and should continue to decline through October.

Manhattan Consumer Sentiment

This week, the Elegran | Forbes Global Properties Manhattan Consumer Sentiment Index (below) slid from +2 to –2.  The score, a measurement of the attitude towards Manhattan residential real estate, has been mixed all year and, lately, has been neutral.  179 contracts were signed this week compared to 185 last week.  

Brooklyn Consumer Sentiment

This week, the Elegran | Forbes Global Properties Brooklyn Consumer Sentiment Index (below) registered a Consumer Sentiment Score of  +63, down slightly from +69 last week.  This means consumer sentiment is currently 63% greater than its seasonally adjusted pre-pandemic average and has been stronger than that historical average since July 2020.  119 contracts were signed this week versus 126 contracts last week.

New Development Insights 

As reported by Marketproof, this week, 62 new development contracts were reported across 43 buildings.  The following was the top-selling new developments of the week:

• TRIBECA GREEN (Battery Park City) reported 5 contracts.
• NUSUN TOWER (Flushing) 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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