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.