As you may have heard, inventory is finally up which is starting to bring prices down in specific price segments and neighborhoods. Have a look at the details here.Read More
Q4 finds Brooklyn following Manhattan into a buyers market. Inventory is up 6%, signed contracts down 18% and closings down 24% year over year.
While price points are starting to be more attractive for buyers, sellers can also take advantage of the market by making their properties stand out from the growing inventory with exceptional staging, marketing and intelligent pricing strategy.Read More
Highlights from Q3 Brooklyn Insights: Inventory continues to be tight throughout the borough, pushing prices slightly up.
The number of contracts signed in the sub-$2m market is down, suggesting a slow down that price point. .
The $2M - $3M price segment exhibited a 14% Y-o-Y increase in velocity mainly driven by the following factors: 1) rising interest rates, which pushed leveraged buyers to lock in current financing terms before rates rise again; and 2) sellers having more reasonable price expectations and accepting discounts to get deals done.
Key neighborhood facts:
Ft Green saw the largest Y-o-Y increase in active units due to new developments hitting the market.
Brooklyn Heights saw the largest increase in median asking price as a number of high end coops hit the market
Dumbo is still the most expensive neighborhood in Brooklyn with a median asking price of $2.m!
While buyers in the Brooklyn market may be taking a similar pause as their Manhattan counterparts, listings are moving at a more solid clip. Overall inventory numbers remain relatively stable or down and sellers are aligning themselves with current market expectations which has lead to quicker absorption and a more active environment.
In any market, properties priced correctly, staged beautifully and marketed effectively will stand out and bring positive results for their sellers. Contact me to discuss how to get the most out of your investment!
It is official, we have shifted to a buyer's market in Manhattan due to a large increase in available inventory and decrease in transactions.
Well priced listings are still moving quickly in all segments though we have noticed higher velocity primarily in resale neighborhoods (East Village) vs. those currently saturated with high end new development (Midtown West).
I am excited to announce the release of the Compass Q4 10717 Brooklyn Market Report. Brooklyn continues to bring it!
Q4 saw a sense of urgency as Brooklyn buyers and borrowers anticipated sweeping changes to the tax legislation. Inventory was down an additional 10% year over year and signed contracts up suggesting the market is still incredibly strong.
Continue below for highlights or download the full report here. Don't hesitate to reach out with any questions!
Are you considering taking advantage of the upcoming spring sales market? Both buyers and sellers are getting started now. Contact me for insights as you start to prepare!
In anticipation to sweeping changes to tax legislation, resale activity ramped up during the fourth quarter as buyers rushed to lock-in the full $1M mortgage interest deduction on new mortgage originations. Resale closings for condos and co-ops within the $1M - $3M price segment, where buyers could be most impacted by the new limit in mortgage interest deductions, increased 11% and 13% year-over-year, respectively. Furthermore, resale activity within the $500K - $1M price segment increased 21% year-over-year as potential buyers originally feared a mortgage interest cap of $500K. In fact, median condo resale prices were down 13% this quarter compared to 4Q16, which was not attributable to any particular project or neighborhood, but as a result of a broader shift in resale volume to units priced between $500K - $1M. However, it remains to be seen how the GOP Tax Bill will impact Manhattan real estate performance long-term, especially when taking into account the $10K cap to state and local income taxes (SALT) deductions, lower marginal taxes for many income brackets, and the new $750K limit in mortgage interest deductions.Read More
There continues to be strength and activity in the core market. The number of condo contracts signed with last asking prices between $1M - $3M and $3M - $5M increased by 11% and 7% year-over-year, respectively. This year-over-year increase in contract activity has been stimulated by a few macroeconomic factors: (1) equity markets, which are typically highly correlated with luxury residential sales in New York City, have continued to reach new highs (the S&P 500 increased by 17% year-over-year from September 2016 and recently crossed 2,500 for the first time), (2) financing remains readily available and inexpensive, and (3) purchasers now have the clarity needed to finalize buying decisions with confidence compared to a year ago when uncertainty regarding the U.S. Election, interest rate hikes, and Brexit was palpable.Read More
Contract activity in the second quarter was essentially flat compared to the same period last year as pricing metrics continue to test record highs. Equity markets, which are typically highly correlated with luxury residential sales in New York City, have also plateaued near all-time highs and interest rates remain suppressed despite three interest rate hikes from the Federal Reserve since December 2016. This macroeconomic environment is likely contributing to relative renewed strength in the high end of the market. Aspirational pricing led to increased buyer patience, however, as Time on Market increased 12% year-over-year to a median of 74 days. Download the full report here.Read More
A surge of new development sales in the first quarter led to an 11% year-over-year increase in number of closings and a new median closing price record of $925K. The Boerum, Oosten, 51 Jay Street, and Pierhouse contributed to a record-high median condo closing price of $1,050,000. The number of available units was lower than the recent highs seen in the second half of 2016 but was still up 11% compared to the first quarter last year. Brooklyn’s overall months of supply increased slightly to 4.4 months, and active units generally stayed on the market longer as the overall median days on market increased to 67 days from 52 days in the first quarter of 2016.
Q1 in Manhattan saw a decrease in closings (attributable to high asking prices and the uncertainty regarding the U.S. presidential election) but an increase in contract signings and inventory over this time last year.Read More
Although closings during the fourth quarter tapered off compared to a busy fourth quarter last year, strong contract activity during the period exhibits a promising trend that bodes well for Brooklyn’s residential market in 2017. New development closings at properties such as One John Street, Brooklyn Trust and Pierhouse have pushed Brooklyn’s median closing price to new highs. Inventory continues to increase at all price points, especially in Major Markets such as South Brooklyn and East Brooklyn. Despite the increase in inventory, Brooklyn remains in undersupplied territory with 5.5 Months of Supply based on the trailing 12-month average of 332 signed contracts per month. Find the full report here:Read More
The fourth quarter brought a long-awaited turning point to the market, as buyer uncertainty receded following the outcome of the 2016 Presidential Election and the ensuing rally in U.S. equities. Coupled with the decision by the Federal Reserve to increase its key interest rate benchmark, luxury buyers who had taken a wait-and-see approach for the majority of the year appeared to finally have clarity needed to finalize buying decisions with confidence. In the first two weeks of December, total contract activity was up 29% compared to a year ago, driven by a surge in contract activity above $3M which increased 51%. While we end 2016 on a high note, the effects of a new administration on residential real estate remain uncertain as we move into 2017.
Click through for a copy of our latest Manhattan Sales Report.Read More