Trick or Treat and Happy Halloween (almost)! I’m excited to reconnect with you from my new seat at Corcoran. In case you missed my last email, I recently joined Corcoran from BHS and will be covering New York City from our Park Slope, Brooklyn office. As before, my primary focus will be serving your residential and commercial real estate needs across Brooklyn and Manhattan. Additionally, through my New Jersey license, I will be covering the New Jersey Shore market from my office in Spring Lake, NJ.
As always, thank you for your continued trust and support. I look forward to assisting you with your real estate needs under the Corcoran banner and continuing to provide the dedication and expertise you’ve come to expect.
Now onto this month's market update...
Brooklyn & Manhattan Real Estate Market Update – November 2024
The Brooklyn and Manhattan real estate markets continue to show signs of strength as we move toward year-end.
Brooklyn remains very active, with signed contracts up 7% compared to last year. Lower mortgage rates and expanded inventory (up 15% annually) have been positive factors. Despite challenges like rising prices and fewer closings, Brooklyn continues to be busy and growing, particularly in resale co-ops and higher-priced listings. Resale co-ops saw a 9% increase in closings for the quarter. Additionally, from an inventory standpoint, the $750K-$1M price range saw the largest increase in listings, up 64% from the same period last year.
On the pricing front in Brooklyn, rising prices persist due to excess demand, particularly at the lower end of the market. The median sale price increased by 5% year-over-year, reaching $822,000, the second-highest figure in three years. Meanwhile, the median price per square foot climbed 6% to a new record high of $1,047
Meanwhile, in Manhattan, the market is finally seeing demand improve for the first time since 2022. Signed contracts and closings are up and marketing times are down. Sales rose by 2% year-over-year to approximately 3,273, approaching the five-year average. Luxury sales were strong with a 10% year over year increase in properties sold for over $5 million. Additionally, luxury sales in September marked the strongest September for high-end sales since 2021. Total sales volume for the quarter was $6.52 billion, up 3% from last year. Additionally, signed contracts increased 8%, the fastest annual pace since 2021.
Despite the rise in activity, pricing remains an issue. The average price per square foot in Manhattan dropped 6% to $1,734, while the median price per square foot fell 9% to $1,271. This marks the sixth consecutive quarter of annual price per square foot declines, a trend not seen since the mid-1990s. The decline appears to be largely attributed to sales shifting from lower-priced neighborhoods to more central areas, where prices have adjusted downward.
With the uptick in mortgage rates from last month, the upcoming election and the holidays, we’ll see how things go. Stay tuned!
Please enjoy this month's update. I hope you find it to be a handy guide for useful market information, articles and events. Please feel free to reach out for assistance or advice. I'm always happy to help.
All the best,
Steve
