Expected Post-Thanksgiving Surge in Consumer Confidence
In this week's market update, we observe a post-Thanksgiving rebound in consumer sentiment. The Elegran | Forbes Global Properties NYC Consumer Sentiment Index moved from –31 during the week of Thanksgiving to –3 this week.
Despite ongoing challenges such as high interest rates, steep rental costs, and limited inventory, consumer confidence is still near par with the pre-pandemic benchmark (The average consumer sentiment registered between January 5, 2015, and February 29, 2020). Demand for resale inventory is stronger than for new development, and demand for Brooklyn residential real estate is stronger than for Manhattan apartments.
Manhattan Supply
As expected, October marked the second peak in supply for the year, and it is expected to decline through the end of the year. Unlike many national markets where limited supply inflates prices, Manhattan presents an abundance of options with 6,759 units available compared to just 145 units in demand.
Brooklyn Supply
The metric is in decline, as expected, and should continue to retreat for the remainder of 2023.
Currently, the borough boasts 3,247 units of supply, significantly outnumbering the week's demand of just 120 units.
Manhattan Pending Sales
Later than history would suggest, but as predicted, the metric began to decline this week and should continue to retreat into February next year. This week, there were 2,421 units.
Brooklyn Pending Sales
Later than usual, but as predicted, pending sales in Brooklyn began to decline this week and should continue to do so through the Winter season. This week, there were 1,783 units.
Manhattan Consumer Sentiment
Manhattan’s score on the Elegran | Forbes Global Properties Manhattan Consumer Sentiment Index increased from -35 to -24. 145 contracts were signed this week compared to 124 last week. The borough has experienced fluctuations in consumer sentiment throughout the year, spending roughly equal time above and below its pre-pandemic levels.
Brooklyn Consumer Sentiment
Brooklyn's consumer sentiment has experienced a significant uplift this week. The Elegran | Forbes Global Properties Brooklyn Consumer Sentiment Index score leaped from -14 to +57, indicating a post-holiday boost in consumer confidence. 120 contracts were signed compared to 62 the previous week.
New Development Insights
Marketproof reported that 39 new development contracts were signed in 31 buildings this week. The following buildings were the top-selling new developments of the week:
- THE SOLAIRE (Battery Park City) and
- THE HURON (Greenpoint)
Each reported three contracts.
