Consumer Sentiment Adjusted: Positive Overall but Mixed Across Segments
Last week, due to a delay in reporting contracts, we reported a surge in the Elegran | Forbes Global Properties NYC Consumer Sentiment to +24, when the accurate measure was +14. This week, we observed a slight decline, bringing the sentiment down to +12, as we approach the winter market and its typical fluctuations. This indicates a healthy 12% increase in demand for NYC residential real estate compared to pre-pandemic levels.
However, consumer Sentiment varies across the different market segments. The Resale and Brooklyn sectors continue to enjoy a favorable outlook, showing positive trends, whereas New Development and Manhattan are back in the red this week.
Manhattan Supply
In Manhattan, the supply reached its second peak as October ended, and now, it’s gradually decreasing in line with seasonal trends. Contrasting with many other markets where scarce supply can drive up prices, Manhattan currently shows an oversupply. This week, Manhattan’s ratio is 7,021 units of supply to 181 units of demand. This trend is expected to continue through the end of 2023.
Data courtesy of UrbanDigs | Manhattan Supply
Brooklyn Supply
Brooklyn's real estate supply is declining for the season, as expected. There are currently 3,313 units available, significantly outnumbering the week's demand of 126 units. This trend will continue for the remainder of 2023.
Data courtesy of UrbanDigs | Brooklyn Supply
Manhattan Pending Sales
In Manhattan, pending sales have remained steady this month. And this week, with 2,495 pending sales, the data is still maintaining its consistency. However, we anticipate this metric to begin to decline as we move further into the winter season.
Brooklyn Pending Sales
Brooklyn's pending sales are currently mirroring the trends observed in Manhattan, maintaining steady figures in recent weeks. This week, Brooklyn reported 1,871 pending sales. However, a downward trend is expected as the winter season approaches.
Manhattan Consumer Sentiment
This week, the Elegran | Forbes Global Properties Manhattan Consumer Sentiment Index experienced a slight downturn, moving from -1 to -5, indicating a modest decrease in consumer confidence. Throughout the year, the sentiment has fluctuated, spending roughly half the year above its benchmark and the other half below it. 181 contracts were signed this week compared to 185 last week.
Brooklyn Consumer Sentiment
In contrast, Brooklyn's real estate market is showing an upward trend in consumer sentiment. This week, the Elegran | Forbes Global Properties Brooklyn Consumer Sentiment Index grew from +58 to +62. This increase means that the sentiment is now 62% above its pre-pandemic average, showcasing a robust and resilient market since July 2020. 126 contracts were signed this week versus 127 last week.
New Development Insights
Marketproof reported that 44 new development contracts were signed in 31 buildings this week. The following buildings were the top-selling new developments of the week:
- 450 WASHINGTON (Tribeca)
- ONE HIGH LINE (West Chelsea)
Each reported four contracts
