I hope this message finds you all embracing the holiday season and surrounded by warmth and the love of those who mean the most to you!
This time of year serves as a welcome reminder of how much connection and gratitude enrich our lives. As we celebrate and reflect on the last year, may we look ahead to 2025 with a renewed sense of optimism for all of the possibilities that a new year brings.
It is my hope that this season offers you time to unwind, savor the company of loved ones and celebrate with joy and peace.
I wish you all a truly special holiday season and a bright, promising start to the new year!
With warm wishes,
While much of this year was challenging with record high mortgage interest rates and the uncertainty that characterizes election years, we are rolling into 2025 with fabulous momentum throughout the market!
We have seen significant increases in deal activity in comparison to this time last year. Overall, contract signings for November and December are up 23.17% year-over-year.
Of the 1,605 contracts signed in November and first three weeks of December, there have been 281 contracts signed for new development property which represents a 48.68% increase from the same period last year when there were 189 contracts signed.
Contracts signed on resale apartments are up 17.27% year-over-year.
Activity in every price segment is up by double digits, led by apartments asking over $5M which has seen a 74.23% increase in contract signings year-over-year which is very likely influenced by the high rate of new development contract signings we’ve been seeing.
Of particular interest is the increase in deal activity we’ve seen on the East Side where contact signings throughout November and December have increased by 38.70% year-over-year. By comparison, the West Side is up about 13.50%.
The upper luxury segment of the market (traditionally defined as property asking $4M+) has seen an incredible wave of activity in the final weeks of this year. Signed contracts so far for December have nearly doubled – 103 contracts were signed in the first three weeks December 2024 compared to just 56 contracts during the same period last year.
Every week so far in December has seen more than 30 contracts signed on property asking over $4M. By comparison, the same period in 2023 saw an average of 19 contracts signed each week.
This most recent week (12/16 to 12/22) saw 38 contracts signed over $4M (inclusive of one discreet off-market downtown condo contract signed off of an asking price of $35.5M), the third highest weekly total of the year. For reference, the highest weekly total reported in 2024 was 40 contracts (3/11 to 3/17) and the second highest was 39 contracts (11/4 to 11/10).
Deal activity has been on the rise since the onset of the fall, and this increase is very much concentrated in the luxury condo market which since November has seen 167 contracts signed to date on condos asking over $4M compared to 90 contracts signed during the same period last year. This represents a whopping 85.56% increase year-over-year, propelled in great part by luxury new development condo product.
The luxury co-op market is also starting to see notable gains with a 57.14% increase year-over-year in the number of signed contracts – there have been 55 contracts signed on co-ops asking over $4M since November 2024 compared 35 contracts during the same period last year.
Reflecting the heightened deal activity we’ve been seeing since the fall, inventory in Manhattan tightened significantly in December with a 10% drop in the number of apartments for sale. Manhattan’s monthly supply rate has therefore decreased for the third consecutive month to a rate of 6.5 months in December, down from 7.0 months in November.
The East Side was particularly active during November with a 48.88% increase in signed contracts from the same time last year. This has led to a notable decrease in the months’ supply for the neighborhood which in December fell to 5.7 months, down from 6.1 months in November.
Supply remains tightest on the West Side with a supply rate of 4.5 months in December, and Midtown West was again the most oversupplied neighborhood at 11.2 months. With a supply rate of 11.0 months in November, Midtown West was the only neighborhood to post an increase from November.
Historically, a months’ supply between 6-7 months indicates a balanced market.
Overall, deal activity is on the rise and supply is thinning out. Though I expect to see an injection of new inventory in early 2025, the momentum of the last few weeks is a wonderful way to welcome in the new year. While over the course of my 23-year career the market has typically reactivated almost immediately come January, since the pandemic I’ve been observing that start delayed into early February. The next few weeks will therefore be crucial in identifying the market’s direction, and I will be monitoring it closely.
In the meantime, I hope that whether your needs are immediate or just for additional information that you will think of me as your expert and reach out to me at any time.
Happy holidays to all!!
All my best,
WORK WITH DANIELLA
Her drive to master each transaction on her client’s behalf has garnered her a fiercely loyal, multi-generational client list and a well-earned reputation as one of the best in the business.
You'll see why.
