An Uneven Return to Positive Territory
This week, the Elegran | Forbes Global Properties NYC Consumer Sentiment Index returned to positive territory. Measuring +12 this week, consumer sentiment has shown a notable recovery, increasing from last week's score of -3 and significantly up from the -31 score seen during Thanksgiving week.
However, it remains an uneven market. Compared to their pre-pandemic benchmarks, demand for resale apartments is stronger than for new development, and demand for Brooklyn is stronger than for Manhattan.
Manhattan Supply
Manhattan’s supply reached its second peak of the year in October and is expected to decrease by the end of the year. In many places, low supply can lead to unmet demand and higher prices. However, in New York City, there's much more supply than demand. Currently, Manhattan has 6,537 units available compared to a demand for only 172 units.
Brooklyn Supply
As we would expect, given the chart below, the metric is in decline and should continue to retreat for the remainder of 2023. The 3,149 units available are far more than are necessary to satisfy this week’s demand of 133 units.
Manhattan Pending Sales
Manhattan's Pending Sales unexpectedly increased this week but should reverse course next week and continue to retreat into February next year. This week, there were 2,454 units pending sale.
Brooklyn Pending Sales
Unexpectedly, pending sales in Brooklyn also climbed marginally this week. We should begin to decline again next week and do so through the Winter season. This week, there were 1,785 units pending sale.
Manhattan Consumer Sentiment
This week, Manhattan’s score on the Elegran | Forbes Global Properties Manhattan Consumer Sentiment Index increased from -24 to -11. As we learn from the chart below, the borough has spent roughly half the year above its pre-pandemic benchmark and the other half below it. 172 contracts were signed this week compared to 145 last week.
Brooklyn Consumer Sentiment
This week, Brooklyn’s score on the Elegran | Forbes Global Properties Brooklyn Consumer Sentiment Index jumped again from +57 to +80. 133 contracts were signed this week compared to 120 last week.
New Development Insights
Marketproof reported that 40 new development contracts were signed in 29 buildings this week. The following buildings were the top-selling new developments of the week:
- FOUR FIFTY GRAND (Clinton Hill)
- THE HURON (Greenpoint, last week’s leader)
Each reported four contracts.
