Consumer Sentiment Dips, But Year-Over-Year Activity Surpasses 2023
The Manhattan and Brooklyn residential real estate markets experienced a slight slowdown in contract signings. Despite this easing, both markets remain more active than they were at this time last year, highlighting continued buyer interest as we approach the holiday season. The Elegran | Forbes Global Properties Consumer Sentiment Index decreased from +44 to +21, reflecting this shift in momentum.
On the supply side, new listings have tapered off, leading to a modest reduction in overall inventory. This tightening supply amid steady demand suggests a balanced market.
This decline in consumer sentiment aligns with recent interest rate increases in 10-year treasury bonds and mortgages. Despite the Federal Reserve’s 25-basis-point rate cut last week, the Fed signaled a more cautious approach to future cuts due to anticipated upward pressure on inflation from expected future economic policies. Expectations have shifted toward a higher-for-longer rate environment, resulting in stabilizing but elevated mortgage rates.
Looking ahead to the next few weeks, the market will likely see continued seasonal slowing in both new listings and contract activity as the holidays near. However, stabilizing mortgage rates—even at higher levels—could instill confidence among buyers and sellers, encouraging them to proceed with transactions. The local market is expected to navigate seasonal patterns and economic shifts with underlying strength.
Manhattan Supply
New-to-market listings saw a 30% increase this week compared to the previous year; however, the overall trend showed a week-over-week decline, with a 5.2% drop as only 253 new listings were added. As a result, the total supply fell by nearly 1%, bringing the total inventory to 6,626 units.
Data Courtesy of UrbanDigs
Brooklyn Supply
Supply decreased by 0.5% this week, bringing the total to 3,286 units, as only 149 new listings were added. This marks a 15% decline compared to the previous week but represents a 3% increase in new-to-market inventory year-over-year.
Data Courtesy of UrbanDigs
Manhattan Pending Sales
Pending sales rose by 1.2%, reaching 2,879 units.
Brooklyn Pending Sales
Pending sales increased by 0.8% to 1,935 units.
Manhattan Consumer Sentiment
This week, Manhattan’s residential real estate market experienced a slight slowdown, with contract signings declining by 6% to a total of 209 contracts. Despite this week-over-week dip, the market remains strong, recording 15% more contracts signed compared to the same week last year. The Elegran | Forbes Global Properties Manhattan Consumer Sentiment Index saw a modest contraction, decreasing from +14 to +7.
Brooklyn Consumer Sentiment
Brooklyn’s residential real estate market experienced a slowdown this week, with 137 contracts signed, marking an 11% decrease from the previous week but a 9% increase compared to the same period last year. The Elegran | Forbes Global Properties Brooklyn Consumer Sentiment Index declined from +100 to +78.
New Development Insights
Marketproof reported that 41 new development contracts were signed in 31 buildings this week. The following buildings were the top-selling new developments of the week:
- Bergen Brooklyn (Boerum Hill) signed 5 contracts
- 520 Fifth Avenue (Midtown) signed 2 contracts.
