Contract Activity Rises ~10% Compared to the Previous Week in Manhattan & Brooklyn
Contract activity remained relatively strong in Manhattan and Brooklyn this week and continued on a slight uptrend over the last few weeks, countering the typical August trend. Motivated, in part, by declining mortgage interest rates, buyers are taking advantage of this window of opportunity. Contract activity was 9% higher in Manhattan and 10% higher in Brooklyn this week compared to the previous week. Considering Manhattan, Brooklyn, and Queens together, the Elegran | Forbes Global Properties Consumer Sentiment Index remained unchanged at +25.
On the supply side, the market is awaiting a slew of new inventory expected to come immediately following Labor Day. Some sellers, especially in Brooklyn, looking to stand out and beat the rush to offer active buyers fresh inventory, are starting to come to market. While new-to-market supply increased only 1% in Manhattan, 20% more properties came to market this week compared to the previous week in Brooklyn.
With a rebounding stock market, a looming interest rate cut on the horizon, and declining mortgage interest rates, the fall could be shaping up to be fairly active despite the election and some other blips of uncertainty.
Manhattan Supply
Overall supply continues its downward trend, decreasing by 2% to 6,118 units currently for sale. However, a surge in new listings is anticipated as Labor Day approaches. This week, 181 new properties came to market, a slight increase of one unit compared to the previous week.
Manhattan Supply | Data courtesy of UrbanDigs
Brooklyn Supply
Brooklyn’s supply remained relatively steady, with a slight decrease of just ten units, bringing the total to 3,172 available for sale. In anticipation of the fall listing season, some sellers appear eager to get a head start, leading to a 20% increase in new listings this week compared to last, with 163 properties hitting the market.
Brooklyn Supply | Data courtesy of UrbanDigs
Manhattan Pending Sales
Pending sales remained stable, increasing by four to 2,952 units.
Brooklyn Pending Sales
Pending sales continued to decline, contrasting Manhattan's trend. This week, the number of pending sales dropped by 1.9% to 1,855 units.
Manhattan Consumer Sentiment
This week, Manhattan’s score on the Elegran | Forbes Global Properties Manhattan Consumer Sentiment Index increased, rising from +9 to +18, as 214 contracts were signed, a 9% increase compared to the previous week.
Brooklyn Consumer Sentiment
Contract activity increased by 11% compared to last week as 127 contracts were signed this week. This upward trend is reflected in the Elegran | Forbes Global Properties Brooklyn Consumer Sentiment Index, which rose from +59 to +74.
New Development Insights
Marketproof reported that 40 new development contracts were signed in 33 buildings this week. The following buildings were the top-selling new developments of the week:
- The Eleven2 (Bushwick) signed three contracts.
- The Broad Exchange Building (Financial District), Hendrix House (Kips Bay), and 1484 Dekalb Avenue (Bushwick) each signed two contracts.
