The Randy Baruh Team here with you August's market report for Brooklyn and Manhattan. As the upward trajectory continues, there's a noticeable decrease in contract activity, accompanied by extended listing durations.
Manhattan at a Glance:
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867 contracts signed
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134 average days on market
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6,226 active listings
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$1,918 average price per square foot
Brooklyn at a Glance:
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249 contracts signed
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108 average days on market
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1,238 active listings
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$1,180 average price per square foot
In August, Manhattan witnessed the signing of 860 contracts, signaling a 5% decrease compared to the previous year but a notable 7% upswing from the preceding month. This suggests an encouraging trend in the real estate market. A particularly striking development is the 8% year-over-year surge in co-op activity, highlighting the growing interest in cooperative housing. Another noteworthy observation is the 9% surge in contracts for properties exceeding $5 million last month. This increase can be attributed primarily to robust activity in high-end resales and the emergence of luxury new developments, particularly in the vicinity of Billionaire's Row. In contrast, contracts for properties under $5 million experienced a 6% decline year-over-year.
Shifting our attention to Brooklyn, the borough recorded 1,238 contracts signed in August. Despite a significant 27% reduction in inventory levels compared to August 2022, the Brooklyn real estate market continues to demonstrate resilience. Of note, 51% of Brooklyn deals closed below the initial asking price last month. This reflects a level of negotiation flexibility, with transactions typically settling just slightly over 1% below the asking price on average. This pricing trend aligns with market dynamics observed earlier this year, specifically in January and April. Additionally, Brooklyn experienced a 2% uptick in the average price per square foot last month, a result of the increasing popularity of luxury developments and heightened sales activity in sought-after neighborhoods such as Williamsburg.
Overall, the real estate landscape in both Manhattan and Brooklyn remains dynamic and responsive to market forces. Despite some fluctuations in contract numbers and pricing trends, there are clear signs of resilience and adaptability. As we move forward, it will be fascinating to observe how these trends evolve and shape the ever-changing real estate scene in New York City.
Stay tuned for more updates on the ever-evolving New York real estate landscape.