Hey there!

I hope all is well and you're having a fantastic Spring so far.

In this month's market update, I've gathered some great research, articles, and events that I think you'll find engaging. 

Just click on the images further below for more details! 

Let me summarize some key market activity for the month:

  • Economic Outlook - The Federal Reserve increased the Fed Funds rate by 25 basis points on Wednesday. While that may have an impact on mortgage rates, since the increase was expected and already priced in by the market, we may not see much of a change in rates in the near term. Fed economists have estimated that tighter credit resulting from the bank failures will contribute to a mild recession later this year, raising pressure on the central bank to suspend further rate hikes. While Chairman Powell signaled that the Fed may pause future rate hikes this year, he did not signal any rate cuts. That being said, the market has priced in rate cuts for later this year. We'll see.
  • Rates - Mortgage rates declined from their intra April monthly peak of approximately 6.63%. As of Wednesday according to Zillow, the national average 30-year fixed conforming mortgage rate declined 8 basis points to 6.19% from the previous week's average rate of 6.27%. Additionally, the current national average 15-year fixed mortgage rate decreased 17 basis points from 5.50% to 5.33%. The current national average 5-year ARM mortgage rate is up 12 basis points from 5.80% to 5.92%. Additionally, the 30 year-fixed rate jumbo mortgage rate saw a 12 basis point increase from the prior week to 6.57%.
  • Your Monthly Payment - Based on the current 30-year fixed rate for a jumbo mortgage, a $1,000,000 purchase with 20% down would result in a monthly payment of $5,093.
  • Open Houses - Open House activity continues to be strong this Spring. In our weekly Open House Survey, there were 1,851 Open Houses last week with an average of 2.35 buyer groups per OH. This was lower than the prior week’s average of 2.76. 56.8% of the OHs had 1 or less and 38% had 0 groups attending. 82% of these no-shows were in Manhattan. The top 20 OHs had average attendance of 8.1. The best attended OHs were a mix of condition types, but excellent and very good condition made up 85% of the total. Average attendance for "1st OH" was 6.58 versus 1.39 for all the others. This highlights that buyers are showing up for newly listed product and that it’s important to price a property correctly from the outset.
  • Brooklyn Update - In Brooklyn, supply was up 9% over the prior week. The cyclical trend is consistent with prior years, although overall supply is lower at this time of year than in the past 2 years. 228 new properties came to market in Brooklyn last week, off by 13% from the prior week. Pending sales (a measure of demand) were down from the prior week as well. The decline is inconsistent with prior years where demand increased through mid/late June. From a liquidity standpoint, Brooklyn is in the mid part of a neutral range (i.e., neither a seller’s nor buyer’s market).
  • Manhattan Update - In Manhattan, there were 7,092 properties on the market. Supply is rising and closely tracks last year's activity. Pending sales are up as well, indicative of a more balanced market as both supply and demand are increasing in tandem. Weekly supply is up 29.4% since last week and contracts signed were up up 81% since last week (note - this is relative to an uncharacteristically low prior week). Liquidity in Manhattan is in the mid-neutral range (i.e., neither a seller’s nor buyer’s market).
  • Rental Impact - Asking rents increased over the prior month. As interest rates have increased and made purchases less affordable, demand has shifted into the rental market resulting in upward pressure on rental prices. That being said, asking rents over the past several months were below those from the same period last year.
  • From the Street - In Brooklyn buyers continue to be active in the market, albeit not as active as same time last year. Relative to last year, my sense is that there's a greater share of buyers in shopping rather than buying mode. Certain properties are in bidding wars, others are not. Situations are case specific based on pricing, location, property type and other factors. Some buyers are waiting for more and better inventory to come along. Unfortunately, they may be waiting a long time as the trend in supply continues to be underwhelming relative to prior years. Additionally, supply should only get worse as we head into the summer months and out of the spring selling season.    

I hope that helps keep you up to date on the latest!

Help me help you!  Please respond to the Feedback link at the bottom of this email.

Have a great month and feel free to contact me at any time with questions or for real estate assistance.

All the Best,

Steven Segretta
Licensed Real Estate Salesperson
#1 Top Agent - BHS Park Slope 2021
Top 5 Agent - BHS Brooklyn 2020, 2021 
America’s Best Agents - RealTrends 2021, 2022
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NYC Events
Click the image above for curated events in and around New York City during the month of May.
Brooklyn Market Report - Q1 2023
Demand for Brooklyn apartments remains strong, while inventory has declined in the last year. While the number of sales has come down sharply over the past year, it is more about an unprecedented runup in sales volume after the city re-opened and not about a lack of buyer interest
Manhattan Market Report - Q1 2023
The Manhattan apartment market continued to slow in the first quarter, with the number of sales 33% lower than a year ago. This decline was expected and can be attributed to the abnormally strong market of one year ago combined with the unprecedented interest rate increases that began in March 2022
The Fed
Fed raises its key rate by 25 bps but hints it may pause amid bank turmoil.
The Economy
Gross domestic product, the value of all goods and services produced in the U.S., rose at a 1.1% annual rate in the first quarter.
Mortgage Rates & Demand
Mortgage demand drops as bank failures hit jumbo loan rates
Carroll Gardens Family Gains Space, Light, and Color in Sweeping Row House Reno
Interior Design
Fresh Color and Vintage Finds Define an East Village Apartment
Design Ideas
These 21 Farmhouse Kitchen Ideas Are Rustic-Chic Reimagined
Local Drinks
Park Slope's new dedicated beer bar. Brewer's Row is a nod to the borough's rich brewing history and lands on a strip of Seventh Ave. in dire need of a little drink
Local Eats
The 15 Hottest New Restaurants in Brooklyn, May 2023
Escape the hustle and bustle with these weekend getaways from NYC.  Greetings from Asbury Park!
Select Townhouse Listings
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