We are excited to announce the release of the Compass' latest Manhattan & Brooklyn Market Reports. These reports highlight the prevailing trends shaping the market from this past quarter and provides a glimpse into the research and data analytics in which Compass prides itself.
Manhattan Quarterly Market Insights Report
In a clear response to concerns over rising interest rates, buyers moved aggressively to secure new origination financing to lock in rates hovering near the 4% benchmark for a 30yr mortgage. Homeowners were active in refinancing their mortgages in order to take advantage of historically low interest rates from 2014 to 2016, while 2017 saw a drop of nearly $400MM. Existing homeowners not only refinanced for a new lower rate, but to also realize equity appreciation of their homes. According to the Federal Reserve, homeowners’ equity rose $375B in 4Q17, to more than $14.4T. During the housing bubble, equity peaked at $13.4T in 1Q06. Owners equity has grown by more than $8T since the beginning of 20121. Perhaps the sudden drop of refinancing activity in 2017 is an... [READ MORE]
Brooklyn Quarterly Market Insights Report
Condo inventory increased in 2Q 2018 by 4% year-over-year from 980 listings to 1,020 listings, attributable to a 6% year-over-year increase in inventory priced under $3M, which accounted for 92% of condo inventory in Brooklyn. This increase in inventory in the ‘core’ price segment of the market mirrors what was observed in Manhattan during 2Q 2018, where core-luxury inventory increased by 15% year-over-year. Buyers contemplating condos in Brooklyn priced between $500K - $3M exhibited patience as a result of numerous factors: (1) the recent tax reform that reduces deductibility of state and local taxes, including property tax in New York, (2) gradually rising interest rates, which directly reduces affordability for leveraged purchasers, and (3) awareness of potential market weakness / perceived over-supply in the core luxury market. On a positive note, the luxury segment of the condominium market ($3M+) saw a 17% year-over-year decline in active listings – a reflection of stale and aspirationally priced inventory finally being absorbed as a result of a shrinking spread between the bid and ask, as seller’s are beginning to align themselves with current market expectations. As a result of this stale inventory being absorbed, median days on market declined significantly for both listings priced between $3M - $5M (123 in 2Q 2018 vs. 301 in 2Q 2017) and listings priced above $5M (270 in 2Q 2018 vs. 373 in 2Q 2018).... [READ MORE]