Contract Volumes Decline as Memorial Day Nears
This week, contract volumes in Manhattan and Brooklyn declined, reflected in the Elegran | Forbes Global Properties Consumer Sentiment Index, which dropped from +24 to +11. Manhattan had 218 contracts signed, marking a 6% decrease from the previous week, while Brooklyn had 145 contracts signed, a 9% decrease.
As Memorial Day approaches, new-to-market supply is decreasing, signaling the end of the traditionally busy spring listing season. This suggests that despite an overall increase in supply, buyers may have already seen the peak of available choices. Fewer new properties are expected to hit the market during the summer months. The remaining inventory might become more negotiable, as sellers who need to sell will stay on the market and potentially lower their prices to attract buyers, while those who don't need to sell may temporarily withdraw their homes from the market.
For buyers, this could mean more opportunities to negotiate deals during the summer, albeit with fewer choices.
For sellers, with the anticipation of quieter contract volumes over the summer, it is crucial to consider adjusting your asking price now if you are not receiving interest or offers. Alternatively, you might consider taking your home off the market until the fall season.
Manhattan Supply
Inventory in Manhattan increased to 7,408 units as 388 new listings came to market. The pace of new inventory is slowing as summer is approaching, indicating that buyers have likely seen the peak in terms of new inventory and choice.
Manhattan Supply | Data courtesy of UrbanDigs
Brooklyn Supply
Inventory increased to 3,255 units as 234 new listings came to market. While there's been a fresh wave of listings, overall supply is still down about 2% year over year.
Brooklyn Supply | Data courtesy of UrbanDigs
Manhattan Pending Sales
Pending sales increased by 1.7% to 3,033 units this week. Pending sales have crossed the 3,000 level for the first time since last August.
Brooklyn Pending Sales
Pending sales increased by 1.1% to 1,971 units this week.
Manhattan Consumer Sentiment
This week, Manhattan’s score on the Elegran | Forbes Global Properties Manhattan Consumer Sentiment Index decreased from -6 to -13, as 218 contracts were signed, a 6% decrease from last week. The Sentiment Index continues to be in negative territory for the sixth week as contract activity in the borough is comparably light for the spring season.
Brooklyn Consumer Sentiment
This week, Brooklyn’s score on the Elegran | Forbes Global Properties Brooklyn Consumer Sentiment Index decreased from +94 to +76 as 145 contracts were signed, a 9% decrease from last week.
New Development Insights
Marketproof reported that 48 new development contracts were signed in 33 buildings this week. The following buildings were the top-selling new developments of the week:
- Sutton Tower (Sutton Place) reported 3 contracts
- 1155 Bedford Ave (Bedford Stuyvesant) and Brooklyn Point (Downtown Brooklyn) each reported 2 contracts.
