Following peak interest rates on home mortgages, November was the third straight month where new condo sales in New York City fell below a pre-pandemic average.
The market remains on pace to return to the sales numbers of pre-pandemic years, according to data firm Marketproof, as buyers have snapped up eight percent more new condos this year than the same period from 2015 to 2019, and developers have fetched five percent more in price.
“Demand was far ahead of its pre-pandemic average with a 26 percent lead by August,” Marketproof CEO Kael Goodman said in a statement. “That lead has narrowed significantly.”
“If rates are the cause,” Goodman added, “they may also be the solution.” With interest rates on home loans poised to dip below seven percent, contract signings may see an uptick in the months ahead as buyers become more willing to close deals. Rates descended in November from a high of nearly eight percent, an apex not seen in the mortgage market since 2000.
In Manhattan and Brooklyn, early signs of growth have emerged. The boroughs notched seven more contracts than in October, four of which were luxury apartments priced above $4 million.
Related Companies took the top billing in Manhattan with two conversion projects, Tribeca Green and 450 Washington, topping November’s list of most new contracts with eleven and eight, respectively. The median asking price per square foot fell 6 percent last month to $1,960.
The most expensive unit to enter contract was at Extell Development’s 50 West 66th Street, which asked almost $46 million, or $6,570 per square foot, for a 42nd-floor apartment. The project has found numerous buyers for high-priced units while still under construction.
In Brooklyn, Tishman Speyer and Vanke’s project at 11 Hoyt Street and Extell’s Brooklyn Point each reported four signed contracts in Downtown Brooklyn. The median price per square foot grew slightly in the outer borough to $1,430. The priciest unit to enter contract was at Fortis Property Group’s Olympia Dumbo building asking $6.5 million, or $2,450 per square foot.
The market in Queens was muted last month with a mere 11 contracts recorded. Chris Xu’s Skyline Tower reported four new contracts and 134-16 35th Avenue, in Flushing, reported two.
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