1Q 2024 Manhattan & Brooklyn Market Update!

In the first quarter we saw signs of improvement in both the Manhattan and Brooklyn markets, but the long-awaited interest rate decreases have yet to make their highly anticipated debut. In the first quarter of 2024 buyers started to return to the Manhattan market with a 9% increase in signed contracts from the prior quarter. 63% of all transactions at this time were all cash. The luxury end of the market priced more than $20mm saw a surge of 140% increase in contracts signed, which correlates positively to the level of cash deals done. At the same time, we saw inventory levels reach pre-pandemic levels with 6,000 active listings. We anticipate inventory levels continue to climb with the Spring market. We also saw increased contract figures and inventory levels in Brooklyn in the 1st quarter compared to the 4th quarter. The rise in inventory signals a notable shift in market dynamics and this is further evidenced by a steady climb in price per square foot figures. We’re far off from where we should be, but the numbers indicate that the bottom of the market is behind us.