May 2024 Market Overview

May 2024 Market Overview

  • Karp Dagan Team
  • 05/1/24

April unfolds, global tensions rise, inflation worries many, and the economic forecasts swing. Yet, amidst the uncertainty, New York City's real estate market surprises once again with its unwavering strength.

Interest rates climbed – the 10-year treasury surpassed a significant 4.6% – and mortgage rates followed suit. Cryptocurrencies delivered mixed results, and the stock market experienced some turbulence. But through these fluctuations, life continued to be the driving force in the market.

Marriages, new babies, and career moves, all these life events kept the market bustling. Empty nesters seeking a change, growing families building their dreams, and companies relocating employees – they're all actively searching and we're seeing them in our showings.

While the traditionally busy spring sale season transitions to summer, some areas still face limited inventory, while others see a slight increase. Agents' inboxes overflow with emails like 'Seeking [property type] up to $[price range] in [neighborhood],' a clear sign of buyer demand remaining strong as agents seek new listings and off-market opportunities. However, some markets near financial hubs like Midtown and FiDi are experiencing more challenges.  Despite external pressures, the NYC real estate market remains vibrant and adaptable. We can expect further developments in the coming months, particularly in the rental market, where we're already seeing significant rent increases.

Luxury Market: 26 contracts were signed last week in Manhattan at $4 million and above, three fewer than the previous week. Condos outsold co-ops, 16-6, with 1 condop and 3 townhouses in the mix. 8 of the 26 contracts signed last week were at $10 million and above, the largest total of trophy properties since the first week of October 2023. 

Townhouse Market: In the past six months, an impressive 24 townhomes priced above $10 million have changed hands. This surge in high-end sales signals a positive turn for the townhouse market, which experienced a slowdown last year alongside the broader real estate landscape. Economic uncertainties driven by high mortgage rates and global instability deterred potential sellers from entering the market. However, there's been a notable rebound. Luxury residential sales increased by 2% year-over-year in the last quarter, marking the most significant annual rise in three years, while the overall market saw a 4% decline. Additionally, luxury home prices climbed by 9% annually, reflecting growing confidence and demand in this segment.

Mortgage Rates: The interest rate on a 30-year fixed-rate mortgage is 7.125% as of May 6, which is 0.250 percentage points lower than Friday. Additionally, the interest rate on a 15-year fixed-rate mortgage is 6.250, which is unchanged from Friday. Home buyers are readjusting their budgets, realizing that borrowing costs are unlikely to move down anytime soon.

Rental Market: The rental market continues to remain red hot. In April the average rent reached $5,575, a 4% increase from last year. There was also a 9% decrease in inventory year over year. The segment of the market with the greatest price growth was three bedrooms, which saw a 9% increase. Studios remained flat. Remains the #1 Most Visited Brokerage Website In Our Entire Industry: Compass has maintained its position as #1 in web traffic, with over 20 million website views between November 2023 and February 2024 (, a number that significantly surpasses all of our competitors. In the digital world that we are living in, this value to sellers is something that other firms simply are not able to do at this time.

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