with Kenny Levine

QUICK & SKINNY: Real Estate & The Economy...

MY VIEW: As we enter 2025, interest rates and affordability remain front and center in the sector. Mortgage rates are now back around 7% as the FED urges caution. Recent economic data showed inflation ticking higher and ahead of the new policies to be implemented in the incoming Trump administration has the markets pricing in only 1 rate cut by the FED in 2025. 2025 is expected to a bumpy ride for the housing market. Representation will be a difference maker - please feel free to reach out to chat. Happy new year to all!

-MANHATTAN (weekly: Dec 28 - Jan 3)

*115 contracts signed, -21% vs 2023. This is the first year-over-year (YOY) drop in signed contracts since October.

*$1M to $3M -30% vs 2023

*$3M to $10M UNCH vs 2023

*Studio -50% vs 2023

*One Bedroom UNCH vs 2023

*Two Bedroom -34% vs 2023

-MANHATTAN (monthly: November)

*892 contracts signed, +24% vs 2023. The best November since 2021 and the sixth consecutive month contracts increased on an annual basis and third in a row that sales improved > 20% YOY.

*$5M and above +88% vs 2023

*Average PPSF $1977, +10% vs 2023

-BROOKYLN (weekly)

*21 contracts signed, -58% vs 2023. Ouch. 

*Under $2M -71% vs 2023

-BROOKYLN (monthly)

*308 contracts signed, +5% vs 2023. The best November since 2021 and the fourth consecutive month of annual sales gains.

*inventory +8% vs 2023, but the number of apartments on the market was the 2nd lowest November figure in the past eight years. 

*Average PPSF $1222, +11% vs 2023

*Manhattan rents jumped 5% YOY in November as mortgage rates climbed toward the 7% level. 

*USA Mortgage Apps fell 21.9% (vs week ending Dec 13) in the last two weeks of 2024 

*USA 1st time home buyers now older than they've ever been, median age at 38 years old from 35 in 2023 (NAR)