It’s time to take a look at the NYC real estate market update for Q2 2024. 

To view the full reports, visit the links below: 

Corcoran NYC Real Estate Market Update Q2 2024 – Manhattan 

Corcoran NYC Real Estate Market Update Q2 2024 – Brooklyn 

The Breakdown

Sellers had some things to be happier about in Q2 2024. Closed sales saw their first annual increase since mid 2022, and they were up a very healthy 34% compared to Q1 2024. Contracts signed were also up on both an annual (3%) and quarterly basis (13%). 

But there was also some good news for buyers during the quarter. Inventory was up significantly compared to Q1 (20%). And the average price per square foot fell year over year (11%) and quarter over quarter (2%). This was due to across the board price decreases – something that hasn’t been seen in Manhattan since 2017. Despite renewed interest in getting deals done, interest rates are still firmly keeping a lid on prices.  

Brooklyn also saw an increase in closed sales, which was a meaningful occurrence. This was the first time sales increased for two consecutive quarters in nearly two years. Additionally, signed contracts posted a healthy quarterly gain (23%). But unlike Manhattan, signed contracts decreased in the borough compared to Q2 2023 (down 7%).

In another divergence from Manhattan, overall prices were up (both median and average price per square foot). This surprising outcome was due to a few factors, including fewer sales below $1 million due to high interest rates plus more sales in luxury new developments. 

But there was some welcome news for Brooklyn buyers who have been beleaguered by skimpy inventory. Listings jumped 15% compared to Q2 2023 and were up by 33% compared to the prior quarter. 

The Takeaway

Cooling inflation, a strong economy and an unexpected rise in consumer sentiment is raising hopes that a rate cut will finally come in the early fall. But mortgage rates have already backed off the highs seen earlier in the spring. So this combination of factors may pique the interest of more would-be buyers in the coming months. 

This is especially true since rent increases still aren’t showing any signs of abating. And right now, the rent versus buy equation tilts more strongly in favor of ownership, in particular for purchasers of smaller apartments (studios, 1 bedrooms and small 2 bedrooms). Summer does tend to be a more sluggish time of year for sales in NYC. But with improved rates and economic news, we could see some meaningful year over year improvement in sales activity. 

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