Brooklyn slowing down while Manhattan warms up??

Noah Rosenblatt

Talking Manhattan on UrbanDigs.com
Staff member
A look at Avg DOM (with the ticker running) and Avg Price Reduction trends in Manhattan v Brooklyn

1605312242589.png
 

Attachments

  • Market Dynamics_ Manhattan vs Brooklyn.png
    Market Dynamics_ Manhattan vs Brooklyn.png
    23.1 KB · Views: 3

Noah Rosenblatt

Talking Manhattan on UrbanDigs.com
Staff member
Things that make you go hmmm - notice the spread difference in this chart comparing levels of price reductions for deals in contract. Manhattan sellers cutting less, while BK sellers cutting more. Interesting, yeah, but does this preclude something bigger or just noise?

1605554496970.png
 

David Goldsmith

All Powerful Moderator
Staff member

With slower sales and a dip in signed contracts, is Brooklyn losing some of its buzz?

Is Brooklyn losing some of its long-standing appeal as buyers opt for discounted Manhattan properties? While Brooklyn made it through the pandemic relatively unscathed, with listings selling faster than in Manhattan, the gap appears to be starting to close. The latest weekly report from UrbanDigs notes that sales appear to slowing and there was a dip in contracts signed compared to previous weeks.
The new report, which covers the second week of November (6th-12th), shows that Brooklyn properties are now spending nearly twice as long on the market as they were during June (a median of 79 days).
It also finds the lowest number of contracts signed since early October. There were 198 contracts signed in the second week of November, compared to 231 the previous week, and 246 and 202 in prior weeks.
Listings on the market also bumped up: There were 320 new listings on the market for the second week of November, compared to 239 the previous week, and 363 and 390 in the prior weeks.
“The fall active season may be beginning to wane,” says John Walkup, COO of UrbanDigs and author of the report. “In addition, the number of listings removed from the market is the highest it has been since early October, suggesting that more sellers have decided to de-list and wait.”
This sort of pattern is typical of the end of an active season, he says. But as NYC enters a new wave of the pandemic, it remains to be seen “if any momentum can be maintained when the market starts to wind down for the holidays in a few weeks.”
Of course, this is a weekly snapshot and may be too brief a glimpse of the market to discern a trend. Or it may be the start of a pattern. Some clues may come from Brooklyn’s rental market: After a flurry of activity in October, it appears to be slowing down as well for the winter season, Walkup notes.
Renters signed more leases in the second week of November (763), an increase over the previous week (639) and prior weeks (757 and 723). Listings taken off the market have shown a sharp increase in the past two weeks (577 and 587) compared to the two prior weeks (372 and 429).
 

David Goldsmith

All Powerful Moderator
Staff member
New signed contracts for Manhattan co-ops dropped in November following October uptick
Call it a tale of two boroughs: The rally seen in new signed contracts for Manhattan co-ops in October year over year fizzled out in November. while in Brooklyn, contract activity was much stronger in November, remaining elevated over the same month last year.
New signed contracts for Manhattan co-ops (498) were down 15.9 percent in November 2020 compared to November 2019, according to the latest edition of the Elliman Report, which looks at new signed contracts and new listings for Manhattan, Brooklyn, Long Island, Hamptons, North Fork, Westchester County, Fairfield County, and Greenwich, CT. Contract activity for Manhattan co-ops had narrowed the gap in October, coming close to the same level a year ago.
For Manhattan condos, new signed contracts also saw a drop in November. There were 325 new contracts, a decline of 17.5 percent.
New inventory for Manhattan condos, co-ops, and townhouses fell well below year-ago levels and have been trending lower since the summer on a month-over-month basis, the report says.
Brooklyn saw very different contract activity, especially for houses, a continued sign of strength there.
New signed contracts in November for Brooklyn co-ops, condos, and townhouses outpaced levels seen a year ago. There were 150 new signed contracts for co-ops, an increase of 72.4 percent, 199 new contracts for condos, an increase of 49.6 percent, and 184 contracts for townhouses, up from 47, an increase of 291.5 percent.
New listings for Brooklyn co-ops, condos, and townhouses were up 64.2 percent, 11.8 percent, and 28.2 percent, respectively.
On Long Island, new signed contracts for houses increased 9.8 percent and 6.5 percent for condos over November 2019 (a much bigger increase than October and September year over year). Single-family houses showed the most contract activity in November in the price tiers above $400,000. Listings declined for single-family houses; most drops were below the $400,000 threshold, the report says.
The Hamptons saw an increase of 84.3 percent in single-family new signed contracts over the prior year (in October, they more than doubled the prior-year—and this was after peaking in August). Listings of single-family houses was almost double the number seen a year ago, after a peak in September.
While the total of new contracts signed on the North Fork in November was small (56) it was higher than November 2019 (42). This area saw a peak in contract activity in July. Listings remain well above year-ago levels.
In Westchester, new signed contracts for single-family houses and condos were up 28.8 percent and 24 percent over a year ago—down from a peak seen in July. Properties above $600,000 saw the most activity and there were more listings for both types of properties compared to this time a year ago,
Fairfield new signed contracts for single-family houses and condos were up 8 percent and 1.2 percent over year-ago levels. The most activity was seen for properties over $2,000,000. There were sharply fewer single-family houses on the market in November, a decline of 30.9 percent in new listings, keeping the market competitive.
Both single-family houses and condo new signed contracts in Greenwich more than tripled the totals in the same month last year, up 209.8 percent and 212.5 percent. New listings for both property types were up sharply over the same period last year, but well below the rate of new signed contract growth, the report says.
 

David Goldsmith

All Powerful Moderator
Staff member
We keep hearing how red hot Brooklyn has been for the last 5 years, especially townhouses.
8 Warren Place
BOT $1,550,000 3/5/2015
SLD $1,500,000 12/7/2020
 
Top