NYC Real Estate in December 2023

​Mortgage Rates decreased and there is further hope

• In December, Fed telegraphed a reasonable probability to cut mortgage rates further in 2024 in the form of 3 cuts totaling 75 basis points.
  
• While these are only projections and nothing is certain, rates decline will trigger higher real estate transactions volume and can potentially drive home prices up.
  

​Contract activity increased after October 2023

• A total of 1,858 homes entered contract in October 2023, a sharp increase of 23.6% from September and 8.1% from October 2022. 
  
• Both November and December saw the uptick in market activity. This includes inquiries, property visits, submitted and accepted offers - which will be reflected in January data.
  
• This activity is also the result of lower mortgage rates signal as many buyers wanted to get a better price while still in the buyer market.
  

​Inventory is declining

• A declining number of newly-listed homes is keeping the market in balance.
  
• The city saw 35,749 homes listed for sale so far this year, 15% fewer than the same period last year.
  
• As a result, buyers are finding little room for negotiation on prices.
  

​NYC Rents are declining from summer highs. More declines expected.

• Manhattan rents fell annually in November for the first time since mid-2021, sign of more than just seasonal sluggishness.
  
• New leases were signed last month at a median of $4,000, a 4.6% drop from October, and 2.3% lower than in November 2022.
  
• Doorman new lease signings slipped year over year, while those from non-doorman buildings surged over the same period.
  
• Luxury price per square foot year reached a new high and exceeded the $100 threshold for the first time in more than a year.
  
• Luxury listing inventory fell year over year for the third time in four months.
  

​Slower rent growth and higher demand for new developments are among the 2024 predictions

Rising inventory will slow rent growth.

• The number of rental listings jumped 8.8% this year after dropping 36.4% last year. This inventory growth will continue in 2024, as elevated rents and high mortgage rates encourage more owners to rent their space. Also many Airbnb owners have joined long term rental market.
  
• However, this year’s rental inventory remains 16.2% below its pre-pandemic level in 2019 so sharp rent declines won't happen.
  

​
New, Amenity-Rich Condos Will Be the Market’s Hottest Commodity.

• Sponsor units in new developments, on average, sold at prices 23.6% above comparable previously-owned condos in 2023.
  
• Amenity-rich sponsor condos that offer in-unit laundry, a dishwasher, an elevator, and a doorman sold for 37.4% above similar resale condos without these sought-after amenities.
  
• Also, new developments inventory is on the decline because of the cost of construction.
  

I will be happy to connect if you got any questions, comments or ideas. If you would like to know how much your apartment is worth today, email me and we will get you a customized report. ​

Alena Sakovich
Licensed Real Estate Agent | New York City
Certified Negotiation Expert
The Corcoran Group
Mobile: 917.930.9925
Email: [email protected]