Elegran Insights: Weekly Manhattan & Brooklyn Market

Week of 08/02/21

Listing supply in both Manhattan and Brooklyn decreased this week. In Manhattan, supply is falling at a faster rate than pending sales, keeping the Market Pulse stable and remaining a seller’s market. Contract activity decreased in Manhattan and increased slightly in Brooklyn compared to last week. Manhattan is on pace to sign 1,250 contracts in the month of July, which would be a record for the month of July over the last 10-years.

Manhattan Supply continues to decrease, down 2% to 6,636 units for sale this week. This week 327 new listings came to market, a decrease of 7% from last week and a decrease of 36% from the same week last year.

Brooklyn Supply decreased 1.5% to 3,240 units for sale. This week 198 new listings came to market, a decrease of 19% from last week and 40% less than the same week last year.

Manhattan Pending Sales decreased 2% to 5,270 this week. It is becoming evident that pending sales peaked at the end of June, and are beginning to decrease as new contract volume is not keeping pace with the volume of deals closing. Given that units are typically pending for three months, and the peak of the contract activity occurred in early May, pending sales may decline at an increasing rate through August, depending on the velocity of new contracts signed over the next few weeks.

Brooklyn Pending Sales decreased 2% to 3,512 this week.

Manhattan Contracts Signed — 285 contracts were signed this week, an 8% decrease from last week and a 126% increase from the same week last year.

Manhattan Weekly Contract Activity Analysis — Of the contracts signed this week, and based on the last asking price, the median price was $1.14M and the median size was 1,172 square feet.

Brooklyn Weekly Contract Activity Analysis — Of the contracts signed this week, and based on the last asking price, the median price was $1.05M and the median size was 1,335 square feet.

The Manhattan Rental Market is accelerating, and has been since early April. Rental supply is quickly decreasing, vacancy rates are declining, landlord concessions are dissipating and rents are going up. In July, nearly 3,700 apartments were rented in Manhattan, while only about 3,000 new units came on the market. Subsequently , overall supply declined throughout July, from 5,550 at the start of the month to 4,700 at the end of the month. For comparison, in July 2020, nearly 7,700 units came on the market and just under 2,500 were rented.

New Development Insights

As reported by Marketproof, this week, 107 new development contracts were reported within 71 buildings, an increase from the 71 contracts reported the prior week. Manhattan’s performance increased, and accounted for 50% of the contract volume last week, while Brooklyn slightly declined this past week, accounting for 38% of the contract volume. This week, both 1-bedroom and 2-bedroom apartments remain in demand, accounting for the highest percentage of the transaction volume, and above the average in June.

The following were the top selling new developments this week:

• Lantern House in West Chelsea reported 6 new contracts.
• Maverick in Chelsea reported 5 new contracts.
• The New York Dock Building in Red Hook reported 5 new contracts.
• 49 Chambers Street in Tribeca reported 4 new contracts.
• 300 West in Harlem reported 4 new contracts.
• 11 Hoyt Street in Downtown Brooklyn reported 4 new contracts.

Please contact me if you would like to learn more about these, or other new developments.

We will continue sharing the Elegran Insights data analysis with you every week.

If you are interested in learning more about what is possible in today’s market and what the data means for you, I am available for a confidential complimentary assessment and consultation.