Happy almost fall! Before we get into it, it’s important to note that September is the lowest deal-volume month of the calendar year so there is nothing grand to report in terms of unexpected changes. The macro shift, in our opinion, has occurred and what we are beginning to see now is good old seasonality which is a positive. Having said that, new markets are always exciting.
Labor Day has come and gone which means it’s time for new listings. We’re going out on a limb to say that if you are a buyer, it’s a pretty good time to get out there before the onslaught of competition comes in early October.
As always, we are here to help with your real estate needs.
Let’s focus on Manhattan and Brooklyn Supply and Demand charts compliments of Urban Digs (www.urbandigs.com).
Manhattan Supply: We are seeing the first uptick (4.2% increase) in supply since July putting us on track for where we were last year. Although the pop in supply was good right after Labor Day, it did not meet the level from same time 2021. We will be watching the new listing numbers for the next few weeks.
DATA COURTESY OF URBANDIGS.COM
Manhattan Demand: In the early days of September, demand is down (3%). We are not surprised. We expect to see contracts signed ticking down as summer ends. Buyers need time to get out there, see the new supply and start putting in their bids. It might be a couple of weeks before we begin to see the demand numbers start to tick higher, but they will.
DATA COURTESY OF URBANDIGS.COM
Brooklyn Supply: There seems to be a breath of fresh air in Brooklyn with a 5% increase in supply following the Labor Day weekend. Like Manhattan, the number of new listings is below prior years so again this will be a number to watch. The Brooklyn market continues to clamor for new listings.
DATA COURTESY OF URBANDIGS.COM
Brooklyn Demand: Given that supply in Brooklyn has been limited and declining, there has been no shift like Manhattan. Is the slope of the deceleration coming to a halt? Could be. Last week’s numbers showing a +0.2% on the demand side. Again, early days. Time will tell very soon which direction the Brooklyn demand is truly heading but likely will stay a seller’s market.
DATA COURTESY OF URBANDIGS.COM
The supply and demand numbers for both Manhattan and Brooklyn are relatively uneventful given where we are in September and last week was Labor Day. Both markets experienced a macro shift in the April – June timeframe as deal volume returned to more normal levels off the parabolic highs of 2021 and early 2022. The markets have stabilized to more normal seasonal levels and discounts have not ticked up materially. Negotiability may have increased slighting but continues to be limited.
As always, please email or call with any questions. We would be happy to have a deeper discussion if real estate is on your mind. Feel free to contact us anytime!
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