It’s time to take a look at the NYC real estate market update for Q1 2024. 

To view the full reports, visit the links below: 

Corcoran NYC Real Estate Market Update Q1 2024 – Manhattan

Corcoran NYC Real Estate Market Update Q1 2024 – Brooklyn

The Breakdown

The year started off with some positive trends. But things overall were a bit muted in Manhattan. 

Closed sales were down quarter over quarter. But the year over year decline was the smallest decline seen since mid 2022. Signed contracts on the other hand saw a healthy bump compared to Q4 2023 – up 18%. But March dragged things down as activity fell due to rising interest rates. 

Rates also took a toll on prices. Both the median and average price per square foot saw declines as buyers opted for lower priced properties to compensate for lost purchasing power. 

Prospects seemed a bit brighter in Brooklyn during the first quarter. Both closed sales and contracts signed were up on both an annual and quarterly basis. 

The median price and the average price per square foot also saw increases compared to the previous quarter and the previous year. But this was due to a larger percentage of higher end sales – especially in new developments. Prices were otherwise a bit of a mixed bag with resale coops and condos. 

In some welcome news for buyers, inventory saw a healthy increase compared to the prior quarter. But it was still down significantly on an annual basis. The lower level of listings also kept a lid on market activity. 

The Takeaway

A stronger economy in terms of jobs and retail sales plus stubborn inflation has dimmed hopes for a Fed interest rate cut in June. And that may prove to be a drag on the spring sales market in NYC and around the rest of the country. 

But there are some glimmers of hope for buyers. For example, NAR noted that new listings nationally experienced a 14.8% increase year over year. This was the highest annual gain in listings seen since May 2021. Plus continued high interest rates are likely to keep a lid on price increases. 

Buyers are still going to face a lot of competition for top quality listings. But they’ll be competing against a smaller buyer pool as more folks decide to sit on the sidelines waiting for interest rates to come down. Barbara Corcoran has some good insights as to why it may not be such a good idea to wait to purchase. And I tend to agree with her, especially for those who can afford a studio or 1 bedroom. Even with higher interest rates, the buy signals are currently very strong. 

Thinking about buying but not sure if you’re ready? Then sign up for my First Time Buyer Bootcamp to help you figure it out! Join here!

Thinking about listing your home for sale but not sure where to start? Then check out my NYC First Time Seller Guide. You can get it here. 

And if you’re ready to buy or sell, you can set up a call to discuss with me right here – Schedule a Call