September – 2024 Market Update

The LevinKong Team hopes you are enjoying this crisp and comfortable fall weather. For many New Yorkers, this is our favorite season in the city. It’s also when our real estate market typically returns to life after a summer lull, and inventory and buyer activity start to percolate again.

We are seeing a shift as more buyers have entered the market over the last few weeks. While the upcoming election and continued geopolitical and economic uncertainty weigh on consumers’ minds, the new lower interest rate environment has offset much of that of late. It appears that normal seasonality has returned. While we are encouraged by these positive signs, we expect our market, particularly in Manhattan, to bounce back in spring 2025.

Prime Brooklyn has remained very strong, as average price-per-square foot and median sales price have shown significant gains year-over-year. In Manhattan, market segmentation is still very much a thing, but as a whole, we have seen the average price-square-foot decline by approximately 5% from this time last year. Renovations and pricing are key to selling promptly, or selling at all, for that matter. Properties sold within 60 days of hitting the market achieved 98% of their asking price. Properties that took over 120 days to sell, typically a sign that the asking price was ambitious, only achieved 91% of their original ask in the third quarter.

The Fed’s 50 basis point reduction earlier this month revived the market. Two additional rate cuts are expected this year. Mostly, these cuts have already been baked into today’s mortgage rates, where jumbo rates in the city have been ranging in the mid-to-highs fives. Buyers should expect rates to hover in this range for the year. More significant mortgage rate reductions predictably will occur next year. At the same time, banks have begun loosening up lending requirements. This is all very encouraging.

With inflation nearing the Fed’s target of 2% and the spread between corporate bond and treasury yields tightening, more money should flow into risk assets, which often means more real estate purchases in NYC. Inventory remains tight, so shrewd buyers may want to target a home purchase before more competition enters the market next year.

With the LevinKong Team, you can confidently navigate the dynamic and intricate real estate market. Our decades of experience and data-driven, research-based approach are your best tools for success in this environment. We’re here to maximize your goals, protect your investments, and answer any questions or concerns you may have about the market or complex decisions. Our unwavering commitment to your success and our dedication to supporting you every step of the way is a testament to how much we value and care for our clients.