A New Pace
Our New York City real estate market cannot be overgeneralized, and certainly should not be overgeneralized as a personal issue – when you are buying or selling or buying and selling. Time and again, we’ve discussed the complexities and nuances of the city’s many real estate market sectors, shunning the ability to say our market is up or it’s down or good or bad. There are pockets of each.
We ended 2023 with property inventory sliding down, roughly 16% in Manhattan and 13% in Brooklyn month over month, and 22% and 15% respectively since early November. However, we saw an increase in buyer activity this past month, perhaps owed to the decrease in interest rates and end of year conviction of buyers and sellers. We even saw contracts go out in December on several properties that had been on the market more than 90 days.
But we are also seeing an exceptional amount of buyer skittishness – the luxury of deeply considering options, backing out of offers or backing out of buying all together and prolonging the purchasing process, often with reasons that in a tighter market would seem negligible. Nerves seem to be getting to many buyers right now, and many sellers have adopted a wait-and-see mentality. So, for many sectors across our market, the activity and pace feel very sluggish.
These first few months of 2024 will offer unique opportunities for active buyers and sellers. In all likelihood, property inventory will go up in Q1 in Manhattan and Brooklyn from sellers who waited through the holiday season, increasing buyer options, and hopefully brushing off some sleepiness.
Almost certainly, the Fed will continue to lower rates through 2024, getting some would-be buyers in the game and offering those currently active buyers the prospect of locking in favorable pricing now, to refinance in 12-18 months. And despite low inventory, the active buyer who is exploring purchasing in new developments, can also take advantage of all the shadow inventory that hasn’t yet been made active as listings, but sit ready for the taking, as idle buyers wait.
If you are thinking of buying or selling now, explore your options with an experienced and knowledgeable professional, who can discern your needs, challenge potential misconceptions and debunk some current myths. Existing trends are not going to change overnight. So, if you’ve been putting your real estate dreams on hold, consider moving now before increased inventory generates competition on either side of transactions.
We wish you a wonderful and prosperous start to 2024!
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The Numbers
Manhattan Market Activity
Highlighting our market's past 30 days.
Brooklyn Market Activity
Highlighting our market's past 30 days.
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The Properties
Our month's featured listings on the market.
211 Central Park West, 3BD
Upper West Side / Manhattan
Co-op
2 Beds / 2 Baths
$4,500,000
640 Ditmas Avenue
Kensington / Brooklyn
Condo Development
Variety Layouts 1, 2 & 3 Bed Units
Various Layouts and Price Points
161 West 16th Street, 14J
Chelsea / Manhattan
Co-op
Alcove Studio / 1 Bath
$799,000
1912 Avenue H, 4C
Ditmas Park / Brooklyn
Condo
2 Beds / 2 Baths
$625,000
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The Pick
From the cool and eccentric to reserved and irreverent -
Our month's pick of what's happening in New York City.
If you haven't already, you should:
NYC Broadway Week
2-For-1 show tickets.
Over 24 shows participating in this year's line up.
January 16 - February 4, 2024
