Real Estate in December 2024

A record-setting month for Manhattan Real Estate

• Inventory Shrinks: Active listings totaled 5,821, down 14% from the 10-year November average and the first double-digit monthly drop in over 15 years.
• Price Gains: Average price per square foot climbed 10% annually to $1,977, with contracts over $3,000/sq. ft. rising 50%.
• Sales Momentum: Manhattan sales increased 24% YoY, marking the best November since 2021. Condo sales surged 37%, driven by new developments.
• Luxury Strength: Contracts above $5M grew 88% YoY highlighting strong activity in prime locations.

High demand fuels Brooklyn’s momentum

• Record Sales: November marked the strongest sales in three years, with condo contracts up 7% and co-ops up 2% from 2023 lows.
• High-End Boom: Sales above $3M hit 19, the highest in over two years, driven by strong activity in Carroll Gardens/Boerum Hill/Red Hook, where contracts nearly doubled.
• Price Growth: Average price per square foot rose 11%, with condo prices reaching a record high, boosted by new developments over $2,000/sq. ft.
• Limited Negotiability: Discounts averaged just 0.4% below asking price, signaling strong demand.

​Tenant-paid broker fees in NYC are set to end in June 2025

• The Fairness in Apartment Rentals Act (FARE) has been passed by the New York City Council to eliminate tenant-paid broker fees when brokers are exclusively representing landlords.
• If the tenant decides to hire a broker, the tenant will be responsible to pay the broker (whoever hires the broker pays the broker fee). 
• The law applies only to residential rental transactions, not residential sales or commercial transactions.
• Effective Date: The law will take effect 180 days after it becomes a law: June 2025

​New bill introduced in the NYC Council to bring back Airbnb

• Council member Farah Louis has introduced legislation to allow owners of 1-2-family homes to rent their properties for less than 30 days without requiring the owner to be present during the guest’s stay. 
• This would ease some of the restrictions imposed by Local Law 18, which has significantly restricted short-term rental listings since September 2023.
• While this proposal reflects ongoing debates about the impact of Local Law 18, it has not yet passed, and the existing law continues to affect Airbnb operations significantly. 

New York City Council passes City of Yes

• Affordable Housing in High-Demand Areas: By adding 20% affordable housing, families earning 60% of the Area Median Income (AMI) would have more success finding a home in areas where they’ve been priced out.
• Bringing Back Classic Housing: The plan brings back the idea of mixed-use buildings—housing above stores—in low-density neighborhoods.
• No More Parking Mandates: The City of Yes eliminates parking mandates across large areas, lowering costs for developers and helping to unlock more space for housing rather than parking lots.
• Converting Vacant Offices to Housing: Post-pandemic, many office spaces are underused. City of Yes makes it easier to convert empty buildings into residential homes.
• More Accessory Dwelling Units (ADUs): Backyard cottages, basement apartments, and garage conversions are now allowed across more low-density districts.
• More Small and Shared Apartments: The initiative opens the door for more studios, one-bedroom apartments, and shared living spaces.

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​Alena Sakovich

Licensed Real Estate Agent
Certified Negotiation Expert
The Corcoran Group
Mobile: 917.930.9925
Email: [email protected]
590 Madison Avenue, New York, NY 10022