It’s time to take a look at the NYC real estate market update for Q3 2024. 

To view the full reports, visit the links below: 

Corcoran NYC Real Estate Market Update Q3 2024 – Manhattan 

Corcoran NYC Real Estate Market Update Q3 2024 – Brooklyn

The Breakdown

Manhattan

Things were looking up for the Manhattan residential market this quarter. The median price stayed fairly level with last year at $1.150 million and decreased slightly compared to Q2 2024. Closed sales were up both on a year over year basis and on a monthly basis. And although contracts signed declined compared to Q2 2024 (typical of seasonality), they were 8% higher than Q3 2023. 

Inventory remained level with last year and properties sold more quickly than they did last year this time. But despite healthy sales activity, price per square foot for the borough declined for a sixth straight quarter. 

Brooklyn

The Brooklyn market had more mixed signals during the third quarter of this year. The median price in the borough increased annually by 5% to $822,000. And signed contracts were up by 7% compared to Q3 2023. But closed sales were down both on an annual and quarterly basis. And days on market ticked up by 10% compared to the prior year. 

However, in a bright spot for buyers, inventory saw a 15% increase compared to Q3 2023. This was a welcome change from the tight inventory situation seen at the beginning of this year.  

The Takeaway

The long anticipated Fed interest rate cut finally happened and it was a bit more aggressive than anticipated at 50 basis points. However, mortgage rates are not likely to drop much further unless and until another rate cut happens thanks to strong jobs data for the month of September. But rate cuts are indeed still on the horizon. It’s just unclear when and how aggressively they’ll happen. 

With fall now in full swing, buyers may be able to look forward to a somewhat steady clip of new listings. But they shouldn’t expect the spigot to really turn on full force. A lot of sellers around the country still have significantly lower interest rates compared to the ones available now and inventory is still tight in a lot of areas. So that’s going to continue to restrict those who want to upsize or downsize. And that will have a knock on effect for new listings because if sellers can’t move, then they can’t list. 

That being said, the inventory situation isn’t exactly the same across all types of properties. This is particularly true for those interested in starter apartments like studios and 1 bedrooms. And with rents staying elevated, many renters could end up with home ownership costs that are lower than their monthly rent (here’s an example). 

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!