Manhattan Market Intelligence

A couple of weeks ago, I mentioned that we might soon see an uptick in demand as more buyers enter the market , thanks to the recent drop in inflation and an expected rate cut later this month. According to StreetEasy economist Kenny Lee, the most challenging times for NYC home buyers may be over based on recent data. In July, there was a 3.1 percent increase in new listings across NYC compared to last year, indicating that rate lock-in is starting to ease for sellers. Si

In an unexpected twist, August sales activity has surged after a sluggish spring. The heightened competition has even sparked some bidding wars. Whether this momentum carries into the fall remains to be seen, but it seems likely as mortgage rates continue to drop alongside the anticipated Fed rate cut in September. John Walkup, co-founder of Urban Digs, observed, 'The first half of August saw buyers entering the market at a pace surpassing that of the past few years . While i

Not long ago, foreign buyers were snapping up New York City real estate at a rapid pace, but over the past year, sales activity has cooled. With low inventory, high prices, and a strong U.S. dollar, international buyers have eased off the gas. Some may also be hesitating due to the upcoming election, opting to wait and see how things unfold in November. The National Association of Realtors (NAR) reported a 36 percent year-over-year drop in U.S. real estate sales by foreign

Yesterday, we learned that inflation fell to 2.9 percent year-over-year—the lowest since March 2021. This economic data suggests that we may see the anticipated rate cut by the Fed in September, which could help stimulate the market. This summer, the market was sluggish as buyers held out, hoping for more inventory and lower prices, while sellers waited for stronger demand to push prices higher. For those eager to buy but holding off to see what the Fed might do, this co

A new list of the Top 50 Most Expensive Neighborhoods in New York City for Q2 2024 was released by PropertyShark . The coveted top three spots saw no change from Q1 : Hudson Yards held the lead with a median sales price of $7.5M, followed by SoHo at $3.1M, and Tribeca at $2.9M. Notably, Hudson Yards' median price, more than double that of SoHo, was based on just five sales, whereas SoHo's figure encompassed 37 sales. Fieldston made a notable return with a 257 percent p

The Federal Reserve announced yesterday after its two-day meeting that interest rates will remain unchanged. However, things look hopeful for September. According to Federal Reserve Chair Jerome Powell , the strengthening economy and cooling inflation are paving the way for a widely anticipated September rate cut—the first in four years. Brett House, an economics professor at Columbia Business School, says, “The first cut will not make a meaningful difference to people’s po

This past weekend marked a historic moment when President Joe Biden announced he would end his bid for reelection, with only 14 weeks remaining before the election. Shortly after, he endorsed Vice President Kamala Harris for President, who has now gained enough delegates to secure the party’s nomination at the Democratic National Convention next month. While most of you are likely aware of this by now, I thought it was worth examining—although I generally try to steer away

In June, prices decreased for the first time since the pandemic began, leading to a 0.1 percent reduction in inflation . This marked the first monthly decline in prices since May 2020 and brought the annual rate of inflation to its lowest level since March 2021. The Consumer Price Index (CPI) drop slowed the annual rate of inflation to 3 percent, down from 3.3 percent in May. If this downward trend continues, the Federal Reserve may be closer to cutting the federal funds rat

Last week’s release of the Q2 2024 Manhattan Market Report highlighted an increase in inventory. It appears Brooklyn is following a similar trend, particularly with townhouses. As of mid-June, nine townhouses were on the marke t, collectively asking over $100 million, with the highest listed at $18 million. Jonathan Miller, CEO of Miller Samuel, describes this as “highly unusual, especially in a market with relatively limited supply.” Home prices have surged, with the averag

I’m sending today’s email a day early due to the 4th of July holiday tomorrow and wanted to share some highlights from the Q2 2024 Manhattan Market Report , released yesterday, before next Thursday’s email. In short, we’re seeing a modest upward shift in apartment closings and inventory. Apartment prices, however, fell 3 percent from a year ago, averaging just over $2 million—nearly 6 percent up from the previous quarter. The price drops result from a rising inventory of ap

News emerged this week that the former Pfizer headquarters will be converted into 1,500 rental apartments , marking New York City’s largest office-to-residential conversion to date. This project is being led by Metro Loft Developers, who are also managing the conversion of the former Goldman Sachs headquarters at 55 Broad Street into 570 apartments. Nearby, 20 Broad Street , previously an annex for the New York Stock Exchange, has already been converted into 500 luxury renta

With 90-degree temperatures expected for NYC through this weekend, it's crucial to focus on staying cool as the summer heat intensifies. The 12 percent rate increase by Con Edison over three years doesn’t make it easier, but fortunately, there are several effective strategies to keep cool and save on energy costs. Maintaining your AC unit is essential for its efficiency. Regularly cleaning your AC filter ensures that cold air keeps flowing. Proper insulation around your A

Despite a relatively slow month, the luxury market performed moderately well in May, all things considered. New development sales in Manhattan and Brooklyn notably surpassed pre-pandemic levels. According to Marketproof, deal volume in the new development sector averaged 10 percent higher than the pre-pandemic average from 2015 to 2019. Total dollar volume increased by 18 percent, reaching $816 million. In May, there were 54 new development luxury deals. Of these, 53 were

The latest report from the National Association of Realtors (NAR) shows that pending home sales dropped by 7.7 percent in April. This decline is the steepest in three years and marks the lowest level since the start of the pandemic. Economists were expecting sales to remain unchanged from the previous month, making this decline a surprise. What doesn’t come as a surprise is that high mortgage rates remain the primary factor keeping buyers on the sidelines, despite April sale

I hope you had a wonderful Memorial Day holiday weekend. With summer here, albeit unofficially, it's the perfect time to enjoy more outdoor activities. In New York, private outdoor spaces have always been highly sought after, and their desirability has only increased post-pandemic. Balconies, terraces, and private gardens remain at the top of many buyers' "must-have" lists. Private outdoor spaces offer numerous lifestyle benefits and significant financial advantages. Apartmen

Last week, I highlighted some benefits of homeownership, particularly given NYC's exorbitantly high rents. Reportedly, only 5 percent of apartment rentals are affordable on the average local worker’s salary. Some of you expressed interest in buying a home but had concerns about upfront costs, maintenance fees, taxes, and other expenses. To address these considerations, there are several financial tools available to help weigh the costs of buying versus renting. Fortunately,

Despite expectations that rental prices had peaked, they've continued soaring to record-breaking highs . Last month's news of stagnant interest rates prompted some prospective buyers to pivot , flooding an already saturated market with additional renters. However, despite the uptick in rates, Greg Heym, Chief Economist at Brown Harris Stevens, notes that while mortgage rates have risen, they remain nearly 1 percent lower than the average rate over the past 50 years. This bri

According to a recent market analysis, New York City is experiencing a staggering rise in rental costs , outpacing wage growth by a significant margin—seven times faster to be exact. While average wages in the city increased modestly by about 1.2 percent last year, median rents surged by a striking 8.6 percent, as reported by Zillow rental data and the U.S. Bureau of Labor statistics. This gap between wage and rent growth is unparalleled among the top metropolitan regions, wi

PropertyShark just released its annual list of the Top 50 Most Expensive NYC Neighborhoods for Q1 2024. Notably, two of this year's top three neighborhoods, Hudson Yards and Tribeca, retained their top positions from the previous year's rankings for the same period. Joining them this year is Soho, ascending from its previous 4th spot in 2023 to the 2nd most expensive neighborhood this year, edging out Brooklyn’s Vinegar Hill which ranked as 3rd most expensive NYC neighborh

Last week marked a significant development in the housing market as mortgage rates surpassed 7 percent for the first time since November . This uptick in rates appears to have contributed to a notable decline in existing home sales in March , following two robust months prior. The surge in closings experienced in January and February was likely a result of rates falling more than one percent at the end of 2023. This underscores the enduring influence of interest rates on sale