Last week, on the back of the July 4th holiday weekend, the slowdown in Manhattan and Brooklyn real estate was palpable. Both boroughs experienced their lowest weekly volume of contracts signed in well over a year and the number of listings declined in both boroughs by nearly 6% as new-to-market supply declined and more sellers’ took their homes off the market.
What does this mean for the summer market? In the face of growing uncertainty, rising interest rates, and falling equities, some buyers are pressing pause. As a result, the market is slowing and liquidity is decreasing. For sellers, this means it will take more time to sell your home and you’ll likely need to reduce your asking price or offer a larger discount. For buyers, this means you’ll experience a market with less competition and a bit more negotiability.
Manhattan Supply
Decreased 6% this week to 6,019 units as 313 new listings came to market, which is 9% more than last week, and 6% more than the same week in 2019. Supply is expected to continue trending lower through the summer as typically fewer sellers come to market and sellers take their homes off the market when they’re not receiving much activity.
Brooklyn Supply
Also decreased by nearly 6% to 2,534 units as 169 new listings came to market, 13% less than last week and 14% more than the same week in 2019. Supply is also expected to continue trending lower through the summer.
Manhattan Pending Sales
Decreased 4% to 4,272 this week. Pending sales is a pipeline number. It’s a sum of the total number of homes that are in contract, but not yet closed. On average, a home stays “in contract” for approximately 3 months. With that, the quantity of pending sales is poised to continue falling as the velocity of contracts signed today is not enough to replace those that are closing, as contract activity has slowed substantially since this spring.
Chart courtesy of UrbanDigs
Brooklyn Pending Sales
Decreased 3% to 3,004 this week and is also poised to continue falling, for the same reasons outlined above.
Chart courtesy of UrbanDigs
Manhattan Contracts Signed
178 contracts were signed this week. This represents a 21% decrease from last week and a 10% decrease from the same week in 2019. The July 4th holiday contributed to some of the decline this week, although this week had the fewest contracts signed since the week ending January 22, 2021. This is also the first week this year where contract volume every week has fallen below 2019’s level.
Brooklyn Contracts Signed
108 contracts were signed this week. This represents a 29% decrease from last week and a 13% increase from the same week in 2019. This week had the fewest contracts signed in Brooklyn in well over a year.
New Development Insights
As reported by Marketproof, this week, 46 new development contracts were reported across 33 buildings. The following were the top-selling new developments of the week:
- Timber House in Park Slope
- Forena in Flatiron
- The Cortland in West Chelsea
- Anable in Hunter’s Point
