A decline in mortgage rates in January helped boost the sale of new condos in New York City to levels not seen since the summer, the last time rates were consistently below 7 percent.
Buyers signed over 200 contracts last month, a 30 percent increase from December and the highest amount since August, according to a Marketproof report. Dollar volume surged 87 percent, bolstered by a $149 million contract at Extell Development’s Central Park Tower.
“Initial indicators point to a positive rebound in 2024,” said Marketproof CEO Kael Goodman. “In the second half of 2023, we noted an increase in mortgage rates and a decrease in contract activity. As we conclude the first month of 2024, these trends are reversing.”
Goodman predicted that home prices in New York will continue to rise due to limited inventory and few new projects coming to market. Last year, no offering plans were submitted in the city’s central borough for buildings with more than 100 units, Goodman noted.
Manhattan, up and at’em
The number of all cash deals in Manhattan fell in January to 67 percent, down from 72 percent in December, another sign that a fall in mortgage rates has given a boost to sales.
However, luxury contracts priced above $4 million, despite being less subject to interest rates due to more all-cash offers, rose to their highest level since August.
Extell led the luxury market with 4 contracts at 50 West 66th Street, and $174 million in volume at Central Park Tower, where 57 percent of the building’s 178 have units sold since 2019.
In January, buyers signed 113 contracts in Manhattan. The median price per square foot in the central borough fell 8 percent to a little more than $2,000.
Related Companies’ Tribeca Green, a cooperative conversion in Battery Park City, sold the most, with 9 new contracts. Corcoran Sunshine has sold 147 of 274 units in the last 10 months. Claremont Hall, a condo project in Morningside Heights developed by L+M Development Partners and Lendlease, sold the second-most, with 7 new contracts reported last month by Corcoran Sunshine.
Jammed in Brooklyn
Despite cooler mortgage rates, sales in Brooklyn were unchanged last month, with buyers signing 78 new contracts. Total dollar volume declined by 13 percent to $115 million, and the median price per square foot ticked down to about $1,400.
JDS Development’s Brooklyn Tower was the borough’s most active building, with nine deals asking from $980,000 to $3.6 million. Douglas Elliman Development Marketing has sold 19 of 143 units in the building, which remains under construction, since May 2022.
In Greenpoint, buyers signed 5 new contracts at Core Development Group’s 235 North Henry Street for two-bedroom condos asking $1.2 to $1.4 million.
The priciest closing in Brooklyn was for a penthouse at RAL Companies’ Quay Tower, where the buyer nabbed an 8 percent discount to close at $9 million, or about $2,500 per square foot. Oliver’s Realty Group and Vanke are partners on the project.
Quixotic Queens
In Queens, of contracts reported, the median price per square foot fell to about $1,300 from nearly $1,500, while the median total price rose to $815,000 from $785,000.
Chris Xu’s Skyline Tower notched 8 contracts on studios to two-bedroom units asking between $754,000 and $2.1 million. Modern Spaces is selling 130 units remaining of the building’s initial 800-unit inventory. Century Development and ZD Jasper’s Lucent 33, at 37-34 33rd Street in Long Island City, had five contract signings; Nest Seekers International is handling sales.
The priciest unit to close in Queens last month was a penthouse at ZD Jasper and Ascent Development’s The Greene tower at 4530 Pearson Street in Long Island City, for nearly $1,700 per square foot.
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