Post-Election — NYC Real Estate Update
Leading up to the election, the New York City real estate market saw a nice little uptick in buyer contract signings. That was mostly because interest rates dropped to less than 6% (even for just a few weeks) in late August and early September. Even with the election at our doorstep, the Fall 2024 market enjoyed about a 25% increase in contract-signed activity compared to the year before. However, there was still a cloud over the market as everyone waited to see what the post-election period in New York City real estate would look like, and here it is!
It’s still kind of busy! As of the time of this newsletter, the weekly contract signed rate ticked up 2%, and buyer activity remains robust. There were two leading indicators to consider prior to the election: One was interest rates, and the other was the election itself. Now that one of those two things is behind us, buyers seem to have at least some sort of handle on what’s going to happen over the next four years with this new administration. Many expect deregulation in the financial markets and a soaring stock market. Many predictions regarding interest rates indicate that they should hover around the 6% mark, drifting slightly up or down depending on other economic conditions. However, with one leading indicator/obstruction out of the way, purchasers seem to have a clearer view of what’s to come, giving them confidence in purchasing real estate once again. How that pans out in the spring remains to be seen. Meanwhile, the in-contract inventory is staying strong as of this Thanksgiving week. Contracts signed marked their third-highest week of the entire year, which nods to buyer sentiment in today’s market.
While buyers slowly gained confidence, they didn’t have many units to choose from. The fall market never met its historical norm for inventory. Currently, overall city inventory levels remain about 500 to 700 units short compared to a typical fall market. As a result, the inventory supply this winter could see some record lows, and it remains to be seen how supply will bounce back for this spring. Inventory is an important factor in the health of the real estate market, as buyers need choices. The more options they have, the more they come out into the market to purchase. Consequently, many industry professionals are keeping their eye on the overall inventory for this spring, hoping for a strong bounce back.
Another interesting segment for consideration in the 2025 market is the luxury sector. Many believe the luxury market of homes priced at $4 million and above is expected to be extremely strong next year. The week after the election saw Manhattan’s second-highest luxury contract-signed volume in the borough’s recorded history. The weekly volume for luxury real estate reached $364,685,000, just below the week of December 20-26, 2021, when the total was $368,532,000 -- the all-time high. So, many are keeping their eyes on the luxury sector and how this incoming administration could affect the ultra-rich.
Overall, there seems to be some sort of light at the end of the tunnel after a two-year slowdown in the Manhattan and Brooklyn real estate markets, which began when interest rates began climbing in the summer of 2022.
Local Happenings
Rockefeller Center Christmas Tree Lighting
DEC 4 - MID JAN 2025
This year's Rockefeller Center Christmas Tree will come from Massachusetts, the first tree to hail from the state since 1959! The 2024 Rockefeller Tree will be lit daily from 5am to midnight. On Christmas Eve the tree will be lit for 24 hours and on New Year's Eve it will be lit from 5am-9pm. The Tree will be on view through mid-January.
Click HERE to learn more!
Celebrate Hanukkah with Jazzukkah at Eldridge Street
DEC 25
Enjoy a festive, jazz-infused spin on Chanukah classics with The Jazzukkah Project, followed by a special candle-lighting ceremony featuring historic menorahs. Perfect for the whole family, this musical holiday celebration on Christmas Day marks the first night of Chanukah.
Click HERE to learn more!
Featured Listings
Stay Connected
