The Market Report: November 2023

We started last month rounding out the third quarter of the year, seeing increased property inventory across both the Manhattan and Brooklyn markets. The trend continued, although only slightly, through October. But inventory remains historically low, impacting overall sales activity. Manhattan saw 2,788 closed sales last quarter, an 11.3% increase over the prior quarter, though an almost 24% decline in activity year-over-year. Similarly, Brooklyn too saw a significant decline of nearly 32% in sales year-over-year last quarter, but only a slight decrease of around 5% from the prior quarter.

 

Inventory shortage is spurred by would-be sellers grappling with the reality of potentially radically higher mortgage payments, as they face interest rates that are in many cases two to three times greater than those that they had the luxury of when buying their current home. So, for many sellers, motivation hasn’t been significant enough to bring properties to market or to negotiate substantially on pricing.

 

Though we are seeing a greater willingness now for sellers to negotiate, with sale prices on average about 6% off the ask in Manhattan and 5% in Brooklyn. This is also impacting time on the market, with the average Manhattan property sitting for 168 days, and nearly 26% of properties on for more than six months. Brooklyn experienced similar last quarter, though less days on average, at 125 days on the market, with 19% sitting for more than half a year. And buyers are meeting sellers with a slow tire-kicking cadence.

 

We predict that as the new reality of rates sets in further, life needs and stages will motivate the would-be sellers who are on the sidelines to get into the market in the next 3-6 months, while also continuing to see more negotiating and decreased time on the market in general. With market reactions to global turmoil, interest rate levels, and the holidays approaching, we also anticipate rounding the year out with fairly consistent buyer sentiment.

Manhattan Market Activity

Highlighting our market's past 30 days. 

 

 

Brooklyn Market Activity

Highlighting our market's past 30 days

 

 

Our month's featured listings on the market.

 

211 Central Park West, 3BD

Upper West Side / Manhattan

Co-op

2 Beds / 2 Baths

161 West 16th Street, 14J

Chelsea / Manhattan

Co-op

Alcove Studio / 1 Bath

$799,000

26 Gramercy Park South, 3E

Gramercy / Manhattan

Co-op

1 Bed / 1 Bath

$595,000

61 Martense Street, 1J

Flatbush / Brooklyn

Condo

2 Beds / 2 Baths

$920,000