Today In Real Estate

Happy birthday to me! I can think of no better way to celebrate than to reach out to all of you on this newsletter with our latest market update.

The real estate market felt robust since the start of the new year, despite rates remaining in the high 6% range (and even hitting 7%). Anecdotally we've been busy with buyers across Manhattan and Brooklyn and are seeing activity across price points (under $1M to over $5M, and in between). There was much chatter in the industry about the effects of devastating wildfires on real estate in Los Angeles, as well as how that might affect the market here. Our hearts go out to all of those affected, and we hope that they are able to return to some semblance of normal life as soon as possible.

Though there is much uncertainty about how the new administration will impact macroeconomic conditions, as of now, there is momentum going into the Spring in the NYC real estate market.

Manhattan Snapshot

After a solid fourth quarter, Manhattan inventory continued to trend closer to historical norms. As expected seasonally, new listings rose triple digits from December. Despite being up more than 15% versus this time last year -- when inventory was strikingly low -- they still trailed slightly below historical averages.

Signed contracts remained even with this time last year, but we expect an uptick in February to reflect deals culminating in the last couple weeks of the month, given that open house traffic was stronger this January than last year.

While inventory and activity have trended up, prices have remained even, indicating buyers remain price-sensitive. In this environment accurate and competitive pricing remains even more important for successful listings. It also means that the recent activity is not the result of a marketwide price correction (deals!) but rather because of pent-up demand finally pushing buyers into action as they've adjusted to the new normal.

Brooklyn Snapshot

In Brooklyn, despite a seasonal uptick in new listings, inventory remains well below historical averages (as has been the case since mid-2022). Looking closer, a large portion of this uptick was due to an increase in new development inventory (+16% from this time last year) while resale inventory increased much more modestly (+4%).

Signed contracts also ticked up, although very marginally compared to last year, and were down vs. last month. While we expect to see an uptick in February contracts, representing deals on listings that entered the market in the new year, it is clear that inventory will remain the limiting factor in the Brooklyn market this Spring.

January closed sale prices were up, though price per square foot was fairly even due to a greater share of resale closings. New development closings, which typically sell at a higher PPSF, were down 52% from January of 2024. As we've come to expect, Brooklyn's open house traffic surpassed Manhattan's by leaps and bounds, averaging 5-6 visitors each weekend this January versus 2-3 in Manhattan indicating continued strong demand -- outpacing supply -- in the borough.

Mortgage Rate Update

The Fed met last week, and as expected they kept the Fed Funds Rate the same. It’s unlikely that the Fed will lower rates when they meet next in mid-March as they are likely to "wait and see" what happens with President's Trump's proposed tariffs and other policies.

RATE DATA BASED ON BASED ON CITIBANK'S 30-YEAR FIXED-RATE FOR NON-CONFORMING LOANS, COURTESY OF ZACK TOLMIE, SR. LOAN OFFICER.

Real Estate News

Builders and contractors brace for impact from impending Trump tariffs and deportations.

(THE REAL DEAL).

There were more companies searching for office space in New York City in November than there were before the pandemic, according to a new report from office leasing proptech firm VTS.

(BISNOW).

The 30-year fixed mortgage rate is now expected to stay elevated between 6% and 6.5% for the next two years. Just two months ago, economists thought it would fall to the 5% range by the second half of 2025.

(US NEWS).

Curated Collection

Explore a collection of our favorite new listings that have entered the market since the start of the year.

Listings & Recent Sales

241 5th Avenue, #4B

ON THE MARKET

3 BD 3.5 BA $14,500

340 E 23rd St, #15G

ON THE MARKET

STUDIO 1 BA $699,000

135 W 52nd St, #23C

ON THE MARKET

2 BD 2 BA $2,795,000

114 Morningside Dr, #32

JUST SOLD

3 BD 2 BA $1,315,000

69 West 9th St, #11CDE

JUST SOLD

2 BD 3 BA $1,675,000

351 Union Street, #2

JUST SOLD

3 BD 2.5 BA $3,125,000

455A Sackett Street

JUST SOLD - BUYER REP

4 BD 5 BA $4,650,000

77 7th Avenue, #6R

JUST SOLD - BUYER REP

2 BD 2 BA $1,650,000

85 8th Avenue, #1

JUST SOLD - BUYER REP

3 BD 3 BA $2,800,000

Hear it from our clients!

"Isil helped me to find my dream home in record time and then to navigate all of the red tape of NYC co-ops with ease. As an attorney dedicated to her clients, I am deeply grateful for Isil’s problem-solving attitude, her responsiveness and attention to detail, and the utmost professionalism with which she approaches every single step of the home-buying process."

– Nina, Buyer of an UWS Co-op