In September, the number of Active listings for co-ops and condos increased 19.4% from August, and 7.8% from September 2018. Year-over-year, median sales prices for co-ops increased slightly to $790,000 from $770,000, but decreased nearly 16% for condos from $2.165 million to $1.825 million. Average prices for both co-ops and condos decreased over the same time period. In the month of September, 77% of co-ops and 76% of condos sold below asking price, down from 82% and 83% last year, respectively. The discount from the original asking price decreased to 7.6% from 10.4% for co-ops and to 8.1% from 10.0% for condos, as seller's expectations moved more in-line with the market. The median number of days on the market decreased from September 2018 to 132 days from 139 for co-ops and 96 days from 118 for condos.

The week ending October 27th saw nine contracts signed at $4 million at above, the 4th time this year that number was less than ten. Eight of the nine were condos and there was one townhouse contract. Prices were reduced on average by 10% off the original asking price and properties spent an average of 457 days on the market.

Over in Brooklyn, the average sales price remained flat year-over-year, while median sales price decreased slightly to $850,000 from $866,000. While the days on the market decreased, the discounts from both original and last asking prices increased over the same time period.

Manhattan and Brooklyn saw continued year-over-year rent growth as the use of concessions decreased. Overall median rents remained flat from August at $3,500 in Manhattan and $3,000 in Brooklyn. The market share of Landlord concessions in Manhattan was 34.3%, down from its peak of 49.3% in January 2018. In Brooklyn, the share of concessions was 34.6%, down from its peak in April 2018 of 51%. The use of concessions in new development in Brooklyn was 58.7%, nearly double that of existing rentals at 25.8%. Despite improving rental trends, the vacancy rate in Manhattan increased year-over-year for the third straight time to approximately 2.0%.

MORTGAGE MEMO

This past week home loan rates were essentially unchanged from the previous week, breaking a trend of higher rates since the beginning of October.

Bonds hate good news and there is still plenty to go around:

U.S./China trade dispute progress
Brexit progress
Corporate earnings remain positive, as does the economic outlook
Fed rate cut made

Bottom line: home loan rates remain near three-year lows, but up a bit from where they were at the beginning of October. As we head into a very important news week, if you are considering a home loan now is a terrific time to seize the opportunity before it goes away.

Our Mortgage Report Courtesy of Wells Fargo

7/1 ARM Jumbo - 2.625% (3.497% APR)

10/1 ARM Jumbo - 2.875% (3.415% APR)

30-yr fixed Jumbo - 3.375% (3.382% APR)

15-yr fixed Jumbo - 3.00% (3.013% APR)

Released 10/29/19; subject to change

NEW YORK CITY

Condos. Condos. Condos.

A slow sales market further hurt by an increase in mansion and transfer taxes has developers offering concessions to would-be buyers. But is it enough to close sales?

Choppers Getting Chopped

Officials announced a new Federal bill to ban non-essential helicopter traffic over NYC.

Want to Buy a Haunted House?

From Nyack to Manhattan and Brooklyn, here are seven haunted houses currently on the market. The lore of 136 Clinton Avenue being haunted dates back 140 years, with the NY Times running stories in 1878 about otherworldly happenings at the house.

Candy. Candy. Candy.

Here are some family friendly Halloween activities in Brooklyn, and a guide to the Village's Halloween Parade.

NATIONAL/INTERNATIONAL

U.S.'s Most Expensive Listing is Not in NYC

Casa Encantada in Bel Air has been officially listed for $225 million. The 40,000 square foot house was a record setting sale in 1979 when it sold for $12.4 million and again in 2000, when it sold for $94 million.

Nonbank Lenders Make Their Presence Felt

Lenders provided $700 billion of home loans in the third quarter, the highest number in 14 years. Many of these loans were provided by nonbank lenders like Quicken, and loanDepot.

Market Recap

Market Recap - October 2019