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.