Today In Real Estate

I hope you're having a wonderful start to March. With warmer temperatures and an extra hour of sunlight, it feels like Spring already!

Last month, we predicted that there would be an uptick in February contracts given the healthy levels of activity we were observing on the ground. So imagine our surprise when February contracts for Manhattan clocked in below last year's numbers. Digging deeper, it became clear that market activity has been highly localized and submarket specific. Some areas of Manhattan are outperforming last year, others are lagging well behind pushing the marketwide figures down. As for Brooklyn, by now you're probably tired of hearing the same thing from us -- inventory constraints in the popular "brownstone" neighborhoods are continuing to drive strong prices and bidding wars there, which is keeping marketwide figures relatively stable.

As for what's next, we can say that compared to last year, there seem to be far fewer buyers and sellers on the sidelines. My team is bringing on a number of Manhattan listings on over the next few months, and we are actively working with a number of buyers in both Manhattan and Brooklyn across a range of price points. We continue to be very optimistic for a productive year. Please don't hesitate to reach out if you'd like to discuss anything, and remember that even if it's not in our wheelhouse, we have cultivated a terrific network of nationwide agents and other professionals that we can connect you with.

Manhattan Snapshot

Despite expectations for strong contract activity in February based on what we observed in January, contracts signed were actually down marginally compared to last year. Taking a closer look, market activity varied widely across different submarkets in Manhattan. The biggest driver was a significant (-22.1%) decline in contracts in Upper Manhattan (above 97th Street) versus the same time last year. Midtown and the Upper East Side saw a more modest (-8%) decline, but Downtown (below 14th St) and the Upper West Side actually had more contracts signed this February than last.

Another driver of the low contract numbers might be the decrease in overall inventory and new listings compared to last year. However, even the decline in inventory was submarket specific, with decreases concentrated in Midtown and in new development.

The number of closed sales was also down overall (-18.4%), although -- again -- this was largely attributable to a decline in sales in Midtown (down by over 30%) and a similarly large dip (-34.7) in new development closings. Interestingly, prices (both median sale price and PPSF) trended upwards. With the large decline in new development closings, we would have expected this to shift marketwide pricing stats downward, since new development PPSF is typically much higher than resales, but gains in the resale sector balanced things out.

Anecdotally, we have seen a notable uptick in showings at all of our active listings since the start of February. With the sudden drop in mortgage rates this week, we are optimistic that this momentum will continue, though volatility in the stock market remains something to watch.

Brooklyn Snapshot

In Brooklyn, new listings were actually down month-over-month, which is not seasonally expected, and overall inventory remains dramatically below historical averages. Especially in much of "Brownstone" Brooklyn (Park Slope, BoCoCa, Prospect Heights, and Fort Greene) inventory was down notably compared to last year. In those areas that saw increases (Williamsburg, Bed-Stuy, Brooklyn Heights, Clinton Hill) it was quickly absorbed, with signed contracts outpacing new listings in all of the above sub-markets.

Despite strong contract activity in the neighborhoods mentioned above, overall contract activity was slightly down compared to last year due to decreased market activity in South Brooklyn and reduced new development inventory (-6.9%) and contracts (-12.8%) compared to last year.

The lack of inventory and strong contract performance in North and Northwest Brooklyn once again drove sale prices up across the board. While inventory will remain the limiting factor, we are hopeful that if interest rates continue to drop, more sellers will be enticed to enter the market.

Mortgage Rate Update

Mortgage rates began to fall in February, and just this week fell -50 bps as the 10-year Treasury Yield has fallen 50 bps in the last three week. The declining yield reflects the decline in consumer spending and consumer confidence, and it indicates concern about retaliatory tariffs and a possible downturn.

President Trump has indicated that lowering rates is a priority, and while he admits he cannot change the Federal Funds Rate directly, he has indicated that he will influence the economy in other ways to lower rates. The question remains on how the improving rates may balance with other effects of his policy changes.

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

Donald Trump is looking to raise a lot of money fast and is turning to one of his favorite cash sources: real estate. In February, employees at the General Services Administration were given executive orders to sell more than 500 federal buildings. For NYC, this means several large, old buildings could soon hit the market. But does anyone want to buy these spaces?

(THE REAL DEAL).

Rents are up throughout New York City as mortgage prices keep would-be buyers stuck as renters. Median rents in Manhattan hit $4,350 a month in January, up 4.8% from a year prior and slightly below the record $4,400 hit in August 2023.

(BISNOW)

Weekly mortgage demand surged 20% higher, after interest rates dropped to the lowest since last year. Total mortgage application volume jumped 20.4% last week compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. This was not only the first increase in three weeks, but it is an outsized weekly move.

(CNBC)

Important update for landlords: As of May 1, Local Law 157 will require landlords to have installed working natural gas detectors in every non-owner occupied dwelling. Learn more below.

(NYC.gov)

Curated Collection

With Spring finally around the corner, explore a collection of our favorite listings with epic outdoor space just waiting for the first 70 degree day!

Listings & Recent Sales

241 5th Avenue, #4B

FOR RENT

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