Starting with Manhattan, the supply side of the market has finally surpassed the 7,000 threshold, with a slight uptick of 1.8% over the last week. This level closely mirrors the trends we observed in 2022, where the supply neither peaked nor troughed but rather maintained a steady course within seasonal norms. There’s nothing currently suggesting any imminent structural shifts in the market.
On the liquidity front, Manhattan's 30-day rolling pace of contract signings dropped slightly by 1.7% to 985. The market's movement appears lateral, falling below the desired pace of 1,000 contracts, which we'd prefer to see climb steadily throughout the season. This pattern indicates a consistent, albeit not robust, demand, maintaining a balanced market tone.
In contrast, Brooklyn presents a slightly different narrative. The supply there has shown minimal change, decreasing by a mere 0.1% from the previous week to 3,140 units. This stagnant change has been characteristic of Brooklyn's supply this year, requiring a broader view to discern any significant trends. On the demand side, the 30-day contract signings have seen a 1.3% decline to 602, hinting at a market that, much like Manhattan, is moving sideways without significant upward or downward shifts.
The combined insights from both boroughs reflect a market pulse that suggests a shift, albeit slight, potentially favoring buyers more than in recent months. Both markets are experiencing a seasonal ebb and flow, with supply entering at predictable levels and demand showing signs of a subtle retreat.
Focusing on the weekly specifics, both markets are indicating that the peak for new listings might have already been reached this season. Manhattan's new listings decreased by 2.1% this week, while Brooklyn saw a 1.5% drop in new listings. This trend suggests that sellers who intended to enter the market might have already done so, leading to a potential slow-down as we edge closer to summer.
As for the contract signings, Manhattan observed an interesting fluctuation with a 12% increase this week to 229, although this needs to be viewed in light of the previous weeks’ downturns, indicating a lack of sustained momentum. Similarly, Brooklyn’s contract signings are slightly down by 2.1% to 142 units this week, reinforcing the theme of a market without strong directional movement.
The rental markets in both boroughs are also showing some compelling trends, especially as we look towards summer. In Manhattan, high rents are being sustained with a strong leasing activity outpacing new listings, suggesting a possibly tight rental market on the horizon. Brooklyn, too, is heating up, with leasing activities pushing rents towards record highs, a trend that might surprise many given the comparative subtlety in the sales market.
As always, we're here to help you navigate these trends with detailed analysis and tailored advice. Your questions and engagement are invaluable as we decipher these patterns together. Here’s to making informed decisions in a market that continues to evolve!