The best time to buy a home was 20 years ago. The second best time is: NOW

"The Manhattan market is finally showing signs of a comeback, with demand indicators improving for the first time since 2022. We saw a rise in both closings and signed contracts, and deals are moving faster—marketing times are the quickest they've been in over two years. It’s clear buyers are re-engaging, but value remains top of mind with price per square foot continuing to trend down for the sixth straight quarter.

With demand outpacing new listings, we’re keeping a close eye on the fall season. If the Fed continues to cut rates – bringing more supply back into the market – prices will continue to rise. For any prospective buyers out there, I wouldn’t wait too long to make your move.” - Pamela Liebman, Corcoran’s President & CEO

Here’s what happened during Manhattan’s third quarter of 2024:

·  The Manhattan market is making progress and for the first time since 2022, demand’s key indicators all improved in 3Q 2024. Compared to a year ago, closings and signed contracts rose as inventory held steady. The number of sales rose 2% annually, nearing its five-year average. Signed contracts grew at their fastest annual pace since 2021, rising 8%. In turn, marketing times cooled versus 2023 to 108 days, the fastest deals have been inked in over two years.

·  Although sales firmed up over the last three months, pricing continues to reflect how important value is to today’s buyers. In the third quarter, average and median price per square foot fell YOY, down 6% to $1,734 and 9% to $1,271, respectively. This was the sixth straight quarter that Manhattan price per square foot declined on a yearly basis, which hasn’t happened since the mid-1990s.

·  Demand growth continues to outpace new listings: about 3,450 residences hit the market this quarter, an uptick from 2023 but 20% fewer than an average third quarter. Meanwhile, contracts were level with their summer average, preventing an increase in supply. Given that sales and inventory typically rise together alongside buyer/seller confidence during market rebounds, we will be watching to see if new listings to pick up this fall, especially with the Fed’s rate cut now behind us.

Below are some key highlights from the week:

• There were 201 contracts signed in Manhattan last week, up 6% week-over-week and 19% year-over-year.
• Sales have now risen more than 15% annually for four consecutive weeks, the first time that's happened since 2021.
• The year-over-year gain in sales was driven by the low end of the market, with sales under $3M rising 26% annually.
• Compared to 2023, signed contracts increased 31% above 59th Street but just 8% south of 59th Street.
• The top sale was 7A at The Henry (211 West 84th Street) asking $15.450M ($3,114 per square foot).

Below are some key highlights from the week:

• Last week, Manhattan signed contracts rose 42% annually to 190, the best week of any September since 2021.
• This was the most significant year-over-year percentage gain for contracts since the first week of February.
• Reported signed contracts have now improved year-over-year for four consecutive weeks for the first time since June.
• All product types saw annual increases in contracts, led by new development sales, which more than tripled versus 2023.
• The top sale was the 12th floor at 960 Fifth Avenue asking $60M, the most expensive co-op sale in over two years.

Below are some key highlights from the week:

• Last week, 59 contracts were reported signed, up 26% versus last week and 11% annually, the sixth consecutive annual increase.
• This was the first time Brooklyn saw six consecutive annual increases since January.
• Compared to last year, condo activity increased 3% but co-op sales jumped 26%.
• Sales in half of the six price ranges increased versus 2023. The $500K to $750K category had the largest increase with five additional sales.
• Sales increased most significantly in South Brooklyn, up 14 deals annually because of strong co-op activity.
• Last week's most expensive contract was a sponsor sale at Quay Tower, a four bedroom featuring views of Manhattan and the New York Harbor.

“In Manhattan, the median rent experienced its first annual decline in three years, falling slightly to $4,400 per month. Unexpectedly, rents also ticked down from July, which has promoted strong leasing activity. Additionally, the market share of ‘non-doorman’ leases soared to its largest share since October 2021, illustrating the current price-sensitivity of today’s apartment seekers.

The same overall trends can be found in Brooklyn. The borough’s rental market also experienced an uptick in leasing activity, marking the strongest August for new signed leases since 2021. Though median rent increased year-over-year, the figure has fallen monthly during three of the past five months – to reach $3,995.

Even small adjustments in asking rents by owners seem to have a big impact in terms of demand - as August was remarkably busy. While many tenants still likely experience a sense of ‘sticker shock’ with current New York rents, the good news is that last month brought them some relief, albeit slight.”

-          Gary Malin

Here’s what happened in the Manhattan and Brooklyn rental markets during August:

Manhattan Findings:

·       The median Manhattan rent was $4,400 per month in August 2024 – vs. $4,670 per month in July. Median rent fell 6% from July and 2% year-over-year. This marks the largest monthly decrease since November 2020 and the first annual decline in three years.

·       With 6,349 new leases signed in Manhattan, August leasing activity climbed 19% when compared to July and 5% year-over-year. Leasing for non-doorman product outperformed the market as a whole, rising 16% annually.

·       The Manhattan vacancy rate was 2.54% in August, up from July when the rate was 2.18%. Vacancy also rose when compared to the same time last year – as August 2023’s rate was 2.50%.

Brooklyn Findings:

·       The median rent in Brooklyn was $3,995 in August – down minimally vs. the $4,000 per month in July. However, rents rose 3% year-over-year. Median rent in the borough has fallen month-over-month since May but has risen annually for 35 consecutive months.

·       This August, there were 4,951 active listings available in Brooklyn, 3% fewer when compared to July but up 26% year-over-year. Inventory has reached the second-highest level in three years partly due to new rental introductions/building launches.

·       At 1,483 the number of leases signed in Brooklyn during August rose 1% from July and 4% annually. This was the strongest August for lease activity since 2021.

Below are some key highlights from the week:

• Last week, 158 contracts were signed, down 5% from the previous week due to Labor Day but up 37% year-over-year.
• This was the most significant year-over-year percentage increase in signed contracts since the first week of February.
• Activity rose across all product types versus 2023, led by new development sales, which nearly tripled year-over-year.
• Sales over $5M jumped 64% annually, the greatest year-over-year increase over $5M since November 2023.
• The top sale was 5N at 140 Jane Street asking $23.25M ($5,065 PSF), one of Downtown's highest-priced sales of 2024.

Below are some key highlights from the week:

• Last week, 167 contracts were reported signed, down 8% from last week due to Labor Day Weekend but up 2% year-over-year.
• Signed contracts in Manhattan have now increased year-over-year for nine of the past 12 weeks.
• Compared to a year ago, new development sales fell 4% while resale condo and co-op sales rose 9% and 1%, respectively.
• Overall sales over $5M fell by 33% (five deals) versus 2023, but contracts signed over $10M rose 66% (three deals) annually.
• The top sale was the resale of 39A at 220 Central Park South for $34.5M, a 51% increase versus its 2019 sponsor closing.

Below are some key highlights from the week:

• Last week, 204 contracts were reported signed in Manhattan, up 1% week-over-week and 6% year-over-year.
• This was the eighth annual increase in signed contracts in ten weeks and the strongest second week of August since 2021.
• Versus 2023, new development and resale condo rose by double-digit percentages while resale co-op sales fell slightly.
• Five of six submarkets displayed year-over-year improvements in contract activity; Midtown sales dipped versus 2023.
• The top contract was the penthouse at 50 United Nations Plaza asking $39.950M ($4,117 PSF). This apartment originally asked $70M ($7,213 PSF) when the building launched in 2013 and has been on and off the market multiple times.

Below are some key highlights from the week:

• Last week, 77 contracts were reported signed, down 5% week-over-week but up 26% year-over-year.
• This represented the largest annual increase in contract activity since January.
• Both condo and co-op sales had double-digit year-over-year growth. Condo sales were up 23% while co-ops jumped 35%.
• Five of six price ranges increased versus 2023. The $500K to $750K segment had the largest nominal increase, up nine sales.
• The area below Prospect Park showed the largest annual increase in sales of any submarket, up 250% (10 contracts) because a new development called Kensington Manor bulk reported seven deals.
• Last week's most expensive deal was a top floor residence at Love Lane Mews in Brooklyn Heights, offering two terraces.