2024 Q3 New York City Townhouse Report

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.