Market Update: Manhattan & Brooklyn Real Estate

From seasonal shifts in inventory to what’s driving buyer demand, let’s discuss the most recent data. 

 

Manhattan Market Overview

 

As we enter mid-November, Manhattan’s real estate supply is following its usual seasonal trend, decreasing from a high point earlier this fall. Currently, there are 6,684 active listings, a number expected to decline until early January. Sellers and buyers alike may see a slight uptick in activity until Thanksgiving but anticipate a quieter period around the holidays.  For comparison purposes, this time last year the Manhattan listings crossed over the 7,000 mark.

 

 

Demand Trends:

Manhattan’s demand remains steady, with pending sales by week reaching 953 deals, a modest dip of around 5% from the previous week. However, year-over-year demand shows resilience, standing well above 2022 and 2023 levels, and just short of the exceptional 2021 fall market. The market has managed to maintain a robust level despite recent interest rate moves, likely due to deals already in the pipeline. If trends continue, November could mark a consecutive month of stronger-than-expected deal activity.

 

 

Supply Dynamics:

The past week saw 266 new listings, a minor increase from the previous week but overall aligning with the expected seasonal decrease. Manhattan’s market is tightly balanced between moderate demand and limited supply, maintaining a steady yet constrained pace. Weekly contract activity reached 222 deals, up 15% from last week—a promising number heading into the slower holiday season.

 

Renovation Premiums:

For buyers considering a Manhattan home, renovated apartments continue to command a premium of around 18% over unrenovated properties. While this is lower than the post-pandemic peak of nearly 30%, it reflects a sustained preference for updated homes. Even minor renovations from five years ago are perceived as dated, underscoring the market’s emphasis on turnkey properties.

 

 

Brooklyn Market Overview

 

Brooklyn’s real estate market is also moving through a late-fall adjustment. Active listings have reached 3,304, showing signs of a gradual decline since late September. Similar to Manhattan, the approaching holiday season historically leads to a decrease in activity. 

 

Demand in Brooklyn:

Brooklyn’s demand is notably strong, with 659 contracts signed over the past 30 days and ongoing competitive situations in certain neighborhoods. Multiple bids and deals over the asking price are becoming more common, hinting at buyer enthusiasm even in a period typically marked by cooling activity. Weekly demand has also spiked, with 154 deals signed in the last week, up 13% from the previous week.

 

 

Supply Challenges:

 

Brooklyn’s supply is somewhat constrained, with 173 new listings last week, a 40% increase, yet not enough to keep pace with demand. This imbalance could drive further competition, especially if new listings remain limited.

 

 

Renovation Premiums in Brooklyn:

Brooklyn’s renovated apartments command an even higher premium than Manhattan, around 25%. This premium varies widely by neighborhood, with western Brooklyn often trading at higher price points than eastern areas. The trend aligns with buyer preferences for move-in-ready homes, reflecting reluctance to take on renovations given current inflationary pressures.

 

 

Key Takeaways for Buyers & Sellers

 

1. Seasonal Declines in Supply: Expect inventory to shrink until early January, which will mean fewer options but potentially stronger bargaining power for serious buyers.
2. Steady Demand Across Both Boroughs: With demand steady in both Manhattan and Brooklyn, some sellers could be more open to negotiating price in order to capture active buyers before the year-end holiday lull.
3. Renovated Properties Command Premiums: Renovated apartments are in high demand, carrying a premium in both boroughs. Sellers with updated properties may see heightened interest, while buyers might consider potential renovation costs for unrenovated spaces to maximize investment value.

 

For those contemplating a real estate move, Manhattan and Brooklyn are both showcasing strong resilience amidst broader economic uncertainty. The market may not be surging, but it remains steady – setting a reliable stage for both buyers and sellers to act. 

We would be happy to have a deeper discussion.  Please contact us anytime!