Dear Clients and Friends,

Although August 2024 monthly signed contract activity decreased by 4%, it still outperformed August 2023 (perhaps in part due to the recent decline in mortgage rates from an average of ~7% for the 30-year fixed to just under 6.5%). Monthly new supply, however, fell by 31% and now stands at the lowest level we have seen in several years. While sellers are generally behaving along more seasonal patterns with a reticence to list prior to the Fall market, buyers appear relatively nimble and quicker to transact based on real-time shifts in market perception. This underscores a factor that we suggest potential sellers consider: as rates are likely to drop further after the FED meeting this month and demand potentially picks up, buyers will be positioned to move quickly where they perceive value. Sellers, on the other hand, typically require several weeks to prepare a property to list and would be wise to get the process going now so that they can capture this demand ‘pocket’ during the relatively condensed Fall market before we hit the Winter holidays. 

The luxury market (sales over $4M) continued its expected seasonal decline with 73 contracts signed in August versus 85 in July. The 73 contracts signed last month did still outpace August activity for both 2022 (57 contracts) and 2023 (60 contracts). 

 On the new development front, recent building plans filed by the Brodsky Organization and its partners revealed details on the future of one of NYC’s most recognizable landmarks: The Flatiron Building. Brodsky plans to convert the triangular former office building that anchors Madison Square Park into approximately 60 luxury condos, which would imply an average square footage of approximately 3,333 per unit. While the final product remains to be seen, the redevelopment (which they hope to complete by the end of 2026) will not significantly alter, expand, or demolish the current iconic façade. Instead, the sponsors will focus will on redesigning the interior floorplans and building structural components to best suit luxury buyers’ needs, while taking advantage of the building’s unique views and prime location at the nexus of the Flatiron, NoMad, and Gramercy neighborhoods.