After months of a market where sellers had a slight upper hand, New York City real estate is shifting ever closer toward favoring buyers.
Topline
A number of notable changes, including decreasing demand and median sales prices in both the Manhattan and Brooklyn markets, have softened the seller’s market, potentially offering more leverage for home-buyers, according to recent Market Updates (Brooklyn | Manhattan) by New York-based brokerage Elegran.
While the move may be attributed to seasonal trends, it may prove to have more long-term implications for Big Apple real estate in the coming year.
605 Park Avenue, APT 8BC, Manhattan, New York | Presented by Chris Fry, Elegran
Key Facts
- Manhattan Momentum: The property landscape in Manhattan is evolving, with the potential for less competition on the buyer side due to a decrease in demand.
- Seasonal Manhattan Sales: Contracts signed (817) in July decreased 16% from the previous month but follows historical patterns for the area.
- Brooklyn Supply: Listings in Brooklyn have decreased by 6%, with 3,211 properties up for grabs.
- Demand in Brooklyn: There’s been a 16% decrease in contracts signed from the previous month.
- Manhattan vs. Brooklyn: While Manhattan’s market sees new dynamics, Brooklyn’s price per square foot experienced a 3% drop from June to July 2023.
A Big Number
7.052% – The prevailing average 30-year JUMBO mortgage rate. It’s a figure that’s reshaping choices between renting and buying in both Manhattan and Brooklyn.
78 Amity Street, APT 4A, Brooklyn, New York | Presented by Nick Agostinelli and Jules Garcia, Elegran
Crucial Quote
“For foreign investors, there are two potential opportunities. On the sell side, a relatively strong USD offers a chance to realize significant capital gains upon selling their assets. Conversely, on the buy side, the weakening dollar can present an opportunity to purchase Manhattan real estate, tapping into its notorious stability and potential for price appreciation.”
This underscores the distinctive yet evergreen dynamics of Manhattan, which has traditionally been a hub for real estate activity and investment on a global scale.
About the Area
New York City, often dubbed “The Capital of the World,” offers a unique blend of vibrant culture, business, and history. Within its boundaries, Manhattan is known for its diverse neighborhoods, career opportunities, and iconic sights, while Brooklyn brings together a mix of tradition and modern living, characterized by its varied communities and burgeoning art scenes. Both boroughs provide a balance of the dynamic pace of city life with pockets of calm and charm, making them perennial favorites for residents who appreciate a well-rounded urban experience.
