https://media.perchwell.com/client_website_images/pictures/000/009/911/original/CWI-6p1ipi5t5t.jpg?1738648570

Manhattan:The Manhattan townhouse market continued to demonstrate resilience in Q3 2024, with key pricing metrics showing strong growth despite ongoing challenges with inventory. The market saw a 15% year-over-year increase in the average sale price, reflecting ongoing buyer demand for renovated townhouses, while the average price per square foot (PPSF) rose by 12%.Although there was a 9% decrease in the number of transactions compared to the same period last year, total dollar volume increased by 4% year-over-year, indicating steady market growth. This slight uptick in dollar volume, despite fewer deals, highlights that buyers are increasingly willing to pay premium prices for available properties, even with higher interest rates persisting.One of this quarter’s standout sales was 4 East 79th Street, a grand 35-foot-wide, 15,200-square-foot C.P.H. Gilbert mansion, which sold for $56M after spending 398 days on the market. This sale not only ranked as the highest-priced transaction for Q3, but also stands as the second-highest sale of the year across Manhattan’s townhouse market.Broader economic indicators are moving in a favorable direction, which could contribute to increased transaction volume in the coming months. Notably, the 0.5% reduction in interest rates implemented by the Fed in September is expected to boost buyer confidence. Additionally, REBNY’s Manhattan Office Visitation Report revealed that August saw some of the highest post-pandemic office visitation rates, averaging 74%, and office leasing activity surged by nearly 50% year-over-year, driven by new leasing in the financial services sector.As the white-collar workforce spends more time in the city, it’s reasonable to expect growing demand for high-end residential real estate. With these positive economic signals and increased buyer activity, the autumn selling season is poised to build on the market’s strength and drive continued interest in Manhattan’s townhouse sector. Brooklyn:In an overall sluggish year in the New York City real estate market, Brooklyn townhouses fared relatively well. Despite the fact that the number of transactions are down 6%, dollar volume, average sales price, and average price per square foot (PPSF) were all up year-over-year. This indicates that while buyers were more discerning and had less urgency in their searches, they were willing to step up in terms of pricing for the right properties. This is also largely due to the demand for renovated product and lack of inventory in this area.Notable sales so far this year include 19 Montgomery Place, a 30-foot-wide single-family home in Park Slope, which sold for $12.5M and over $2,000 PPSF. 155 Warren Street in Cobble Hill sold for $15M and nearly $2,800 PPSF. This was a 25-foot-wide single-family home with parking. Evidently, there is high demand for super-prime real estate in Brooklyn, and buyers are willing to pay a premium for these properties when they come available.Looking ahead to the end of the year, there are 58 properties currently in contract in Brooklyn, setting up a strong finish to the year and a promising start to 2025, especially considering the boost in activity with falling interest rates.

https://media.perchwell.com/client_website_images/pictures/000/009/824/original/CWI-6p15ehtkf1.jpg?1738634243

2024 Q3 New York City Townhouse Report

Manhattan: In the second quarter of 2024, the Manhattan townhouse market saw a positive trend in pricing, with a 12% increase year over year in both average sales price and average price per square foot. Transaction volume slowed slightly compared to the first quarter of 2024, as many sellers are reluctant to move on from their favorable lower mortgage rates. Despite this, the market's overall strength was reflected in the rising prices across the borough.Specifically, the Upper East Side saw a substantial increase in price per square foot, reaching $1,807, marking a significant 18% rise year over year. Meanwhile, the West Village commanded an even higher price of $2,447 per square foot, an 8% rise year over year.There have been a few standout transactions this quarter including 135 West 11th Street in the West Village, a newly constructed single-family house, which achieved a sales price of $28.9 million ($4,133 PSF) and 110 East 70th Street on the Upper East Side, a significant 10,000-square-foot townhouse designed by Steven Harris, sold for $23.375 million ($2,264 PSF). The $72.5 million sale at 138-140 West 11th Street that occurred in Q1 remains the highest priced townhouse sale to occur this year so far.Looking ahead to the third quarter, the market outlook appears optimistic with prices maintaining strength amid the tight market conditions and lower inventory levels. This resilience suggests continued stability in Manhattan's townhouse market as it moves through 2024.Brooklyn: In Brooklyn, pricing has increased year-over-year with a slight decrease in volume, indicating that buyers are more discerning than ever but are willing to step up for the right properties. Additionally, the most active sector of the market is renovated, move-in ready property, pushing pricing up. Many of the prime Brooklyn neighborhoods have also been experiencing a lack of inventory, pushing volume down.Notable Brooklyn sales included 784-786 President Street for nearly $18M – two 7,000 s.f. multi-family townhouses, likely to be developed into condos and 269 Henry Street in Brooklyn Heights which sold for over $14M. This property is a 25'-wide, 9,000 s.f. rental building. 19 Montgomery Street in Park Slope recently went under contract–a renovated 30'-wide single-family which was last asking $15M.With 92 contracts currently signed in Brooklyn, we are optimistic for the second half of the year. The market has remained strong and steady even through some of the typically slower seasons, and buyers have adjusted to the interest rate environment.

https://media.perchwell.com/client_website_images/pictures/000/009/793/original/CWI-6p158vb5ao.jpg?1738634058

2024 Mid-Year New York City Townhouse Report

https://media.perchwell.com/client_website_images/pictures/000/009/788/original/CWI-6p175vphdr.jpg?1738636104

See inside a secret NYC garden that only 12 homes can enjoy — 4 of which are for sale

The Manhattan townhouse market in the first quarter of 2024 showcased resilience amidst external uncertainties. Factors such as interest rates and scarcity of inventory have fostered a wait-and-see approach among many market participants. Nonetheless, despite a slight year-over-year decline in transaction volume, pricing remained strong across various neighborhoods, indicating underlying confidence and growth potential in the year ahead. With 50 signed contracts to end the quarter and listing activity picking up, we expect a busy Spring season.Notably, The Upper West Side submarket has seen a 30% increase in transaction volume compared to Q1 of last year. Similarly, the West Village submarket experienced a remarkable 67% uptick in average prices, fueled by the groundbreaking $72,500,000 sale at 138-140 West 11th Street, setting a new record in downtown townhouse sales. Of particular note is the continued activity in the ultra-luxury segment, with 6 out of 61 transactions surpassing the $20,000,000 mark this quarter (compared to 6 out of 74 transactions in Q12023).The townhouse market in 1Q2024 in Brooklyn is characterized by a dip in volume, but a slight surge in pricing – likely the result of an overall lack of inventory throughout the borough at the start of this year. Buyers have been active, particuarly ones in search of renovated 1-2 family homes at the mid level market. With so many buyers in this category, there is strong demand for this type of product. Properties that fit this criteria sell quickly. For example, Garfield's sale at 603 5th Street for $5.495M, a newly renovated single-family home in Park Slope went into contract in under two weeks. Properties that require major renovations have been commanding longer deal cycles over the last year as buyers are hesitant to take on projects due to cost and timing. This provides discerning buyers good opportunities for conversions and development for those who are willing to take on the task of a significant renovation.Despite a general downturn in volume, activity in Brooklyn remains strong. Neighborhoods that fared best in Brooklyn were Brooklyn Heights and Fort Greene, both of which had a significant increase in both pricing and volume year-over-year. Areas to watch out for are Park Slope and Carroll Gardens – with 35 and 9 properties in contract, respectively, with those neighborhoods poised for a strong middle of the year.

https://media.perchwell.com/client_website_images/pictures/000/009/794/original/CWI-6p178pr5tu.jpg?1738636199

2024 Q1 New York City Townhouse Report

https://media.perchwell.com/client_website_images/pictures/000/009/870/original/CWI-6p17g75b3l.jpg?1738636447

Famed ‘Jack Reacher’ author Lee Child splashes out $17M for a fabulous NYC townhouse

https://media.perchwell.com/client_website_images/pictures/000/009/786/original/CWI-6p15fd26fl.jpg?1738634272

Inside J. Lo and Ben Affleck’s NYC house hunt eyeing tony townhouses on the Upper East Side

While the post-Pandemic momentum slowed in 2023, The Brooklyn market has shown its resilience in 2023. With 44 total transactions occurring in 4Q 2023, the average price per square foot equates to $1,094 which shows a slight increase of 4% when compared to 4Q2022. The notable recent trend revolves around heightened activity in higher price ranges. The absence of renovated properties in the $5-7M range led to an upward shift in entry-level pricing. 2023 showcased a significant surge in activity within the $7-10 million range, and higher-priced inventory above $10 million is experiencing unprecedented levels of business. Renovated homes, particularly those with designer finishes, are commanding a substantial premium.Notable sales this year included Garfield's sale at 271 Hicks Street, a mint 24'-wide single-family home, for just under $15M and $2,360/ft – as well as a record setting sale in Park Slope at 53 Prospect Park West for $13.5M. Both of these standout sales took place in the latter half of the year, indicating that the Brooklyn market is headed in the right direction.In 2023, the Brooklyn market adapted to an uncertain economy, showcasing resilience and flexibility. The expected decrease in mortgage rates and the continued presence of active buyers provide evidence for a robust market in the upcoming year.

https://media.perchwell.com/client_website_images/pictures/000/009/795/original/CWI-6p15dg85ml.jpg?1738634209

2023 Year-End Brooklyn Townhouse Report

The Manhattan townhouse market in 2023 experienced a slowdown in momentum when compared to the robust performance observed in 2022 and 2021. This deceleration can be attributed primarily to the rising interest rates and scarcity of inventory, fostering a cautious atmosphere for both buyers and sellers. Buyers have largely been in "waiting" mode to see what the market will do amid this uncertainty, only feeling motivated to act where they feel there is good value or are provided a turnkey, renovated home. Simultaneously, sellers, who are for the most part in strong financial position, have also been waiting the market out, holding firm on their pricing believing interest rates will decline and the market will bounce back. This stand-off accounts for much of the slowdown in volume.The neighborhoods which fared the best year-over-year were Midtown East, Gramercy, and Tribeca/Soho – traditionally neighborhoods which have relatively lower volume, allowing a few standout sales to make a big impression on the market.4Q2023 showed signs of improvement quarter-over-quarter in comparison to 4Q2022 as inflation and interest rates eased, defying the usual holiday slowdown and displaying positive momentum for 2024. Despite a reduction in overall transaction volume this year, pricing has remained stable, suggesting resilience in the market amid external uncertainties.

https://media.perchwell.com/client_website_images/pictures/000/009/796/original/CWI-6p15ds7kfa.jpg?1738634221

Morgan Garofalo