U.S. Housing Report: Affordability Improves with Lower Mortgage Rates, but Sales Stall as Prices Remain High

In August, U.S. home sales reached a nearly 13-year low, prompting the Federal Reserve to cut interest rates by 0.50 percentage points on September 18th—the first such reduction since 2020. However, experts suggest this may be too little, too late, as home sales continue to decline despite easing mortgage rates.  

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Midtown’s first FHA-Eligible Luxury Condo Hits Market

The Perrie, a new residential building in Turtle Bay, is the first luxury condominium complex in Midtown to meet the requirements for FHA financing — an unconventional move for Manhattan condos. FHA loans are designed for homebuyers who have imperfect credit, can’t afford a 20 percent down payment, or both. That’s not your typical Manhattan buyer.  

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Weekly Manhattan & Brooklyn Market Update: 9/23

Rihards Gederts - Elegran | Forbes Global Properties The Fed Cuts Rates by 0.5% – A Positive Shift for Buyers The Federal Reserve announced a long-awaited rate cut, cutting rates by 50 rather than 25 basis points. This rate reduction is the first in four years and the most significant reduction since 2008. While this decrease won’t immediately lower mortgage rates, as the market had already priced in much of this initial rate cut, it is a key signal of additional rate cuts on the horizon. This sets the stage for a gradual decline in mortgage rates in the near term. This development is encouraging for buyers who have been sidelined by high rates and for current homeowners who have hesitated to sell due to the “lock-in effect”—the reluctance to trade properties because their existing mortgage rate is significantly lower than current market offerings. As summer wrapped up, buyer demand was already picking up, and with the improved rate environment, this momentum is expected to accelerate. For buyers who are financially prepared and find a suitable property, now may be an opportune time to act. The ability to refinance later as rates continue to decline provides a distinct advantage, giving today’s buyers a strategic edge. Those waiting until 2025 for lower rates, election outcomes, or more economic certainty could encounter a more competitive—and potentially pricier—market as demand increases. For sellers, those with a need to sell in the near term should price their homes competitively and list them as soon as possible to capitalize on the active fall market. Sellers with more flexibility may benefit from waiting until late winter or spring 2025, when we anticipate stronger market activity, driven in part by falling mortgage rates and heightened buyer competition. The Elegran | Forbes Global Properties Consumer Sentiment Index increased from +9 to +13. Manhattan Supply The number of available properties in Manhattan grew by 3.8% this week, bringing the total to 6,622 units for sale as 461 new listings hit the market. While this week’s new inventory aligns with last year’s levels, it is still 20% lower than what we saw during the same week in 2019. As a result, supply remains somewhat constrained, with overall inventory down roughly 2% compared to this time last year. Data courtesy of UrbanDigs Brooklyn Supply Brooklyn now has 3,406 apartments available for sale, marking a 3.3% increase from last week. The influx of new listings is notably higher than in previous years—40% more than the same week last year, and 71% more than in 2019. This surge in new supply has led to a year-over-year increase in Brooklyn’s inventory, in contrast to Manhattan. Total supply in Brooklyn is currently 11% higher than at this time last year. Data courtesy of UrbanDigs Manhattan Pending Sales: Pending sales declined by nearly -4% to 2,668 units.  Brooklyn Pending Sales: Pending sales declined by nearly -4% to 1,697 units.  Manhattan Consumer Sentiment Contract activity in Manhattan saw a small uptick this week, with 170 contracts signed—a 1% increase from the previous week. This steady rise in activity suggests that the upward trend will likely continue through the remainder of September. The Elegran | Forbes Global Properties Manhattan Consumer Sentiment Index also improved, moving from -6 to -4, though it has remained in negative territory for the past four weeks. Notably, contract activity was 32% higher than the same week last year and 27% higher than the same period in 2019 and the recent 50 basis point rate cut is expected to further boost demand, as buyers look to take advantage of declining interest rates. Brooklyn Consumer Sentiment Unlike Manhattan, Brooklyn’s residential real estate market experienced a dip in contract activity this week, with a 6.4% decrease compared to the previous week, totaling 102 signed contracts. However, this still marks a 4% increase over the same period last year and a 12% rise compared to 2019. Given the week-over-week decline, the Elegran | Forbes Global Properties Brooklyn Consumer Sentiment Index dropped from +51 to +42. Looking ahead, the recent decline in interest rates is expected to alleviate some of the current headwinds and potentially drive increased demand in the borough. New Development Insights  Marketproof reported that 58 new development contracts were signed in 42 buildings this week. The following buildings were the top-selling new developments of the week: Monogram New York (Turtle Bay) signed 4 contracts Claremont Hall (Morningside Heights) and Brooklyn Point (Downtown Brooklyn) each signed 3 contracts.   If you would like to chat about the most recent market activity, feel free to contact us at info@elegran.com or connect with one of our Advisors.   About Us Welcome to Elegran | Forbes Global Properties, where our mission is to revolutionize the world of real estate. Founded in 2008 by Michael Rossi, our journey began with an unwavering drive for motivation, innovation, and a genuine care for our clients. As an independently owned brokerage, we pride ourselves on our elite team of "advisors," offering a personalized touch that goes above and beyond the traditional real estate experience. Armed with robust data insights, we empower our clients to make informed decisions that lead to success. Distinguished as the exclusive member of the invitation-only Forbes Global Properties network in NYC, Elegran proudly stands at the forefront of excellence. This exclusive partnership broadens our horizons, enabling us to connect buyers, sellers, and investors with extraordinary luxury properties not only in New York City but across the globe. Our passion lies in turning your real estate dreams into reality, and we are committed to providing exceptional service at every step of the journey. Are you ready to experience the Elegran difference? Dive into the possibilities at www.elegran.com and embark on an unforgettable real estate adventure with us.

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