Data Data Data
Dear Friends and Family,
Everywhere you turn these days, you can find "data.” From the distance trackers on your car or smart-watch to the calorie counter in your nutrition app, and from likes on social media to the price each stock sold for down to the microsecond—technology has allowed for an inundation of data! But what does it all mean? Arriving at an answer for everyday questions seems more challenging than ever. One small miscalculation and you may end up accidentally cheating your fitness goals or losing a bunch of money on the stock exchange.
In real estate, the abundance of data can make the process even more daunting. Determining a property value is more than just a Zestimate. Knowing how to sort through all the variables (financial, political, locational, emotional, familial, etc.) and arrive at the best valuation possible is the job of a trusted broker.
Q3 Manhattan Market Report
As we move into the final quarter of 2024, a more comprehensive picture of the year is beginning to take shape. With the recent reduction in interest rates, it will be interesting to compare the results of Q4 next year. Check out the full report, here, and below are some notable highlights:
Despite a slow start to the quarter Q3 2024 only saw a 1.8% drop compared to Q3 2023
$10-20M contracts signed were up 15.4% YoY and those over $20M increased 16.7% YoY
Condos gained popularity, with contracts up 25.1% YoY
The Art of the Penthouse
In addition to my personal summary of the Q3 report, I create the Toni Haber Team Penthouse Report, part of The Art of the Penthouse. This report and webpage are dedicated to our work with penthouses, primarily in Manhattan. As any finance wizard will tell you, it's not only having the data that’s important, it's what you do with it that matters. Working in a market that I know better than almost anyone, some salient points from this recent quarter are:
Q3 saw 20% more transactions than Q2 (The only Q3 to outperform Q2 since 2018, except for 2020).
Q3 had an average DOM of 145 days, the same as Q2
Q3 closings averaged $2,270 PPSF
Be Advised
When buying or selling, data is more than the latest Market Report. While there are real estate markets across the country where 30-45 day closings are common, in New York closing is typically 60-90 days, and can be even longer if co-op board approval is required. Though cash can certainly help move things along, the process requires necessary due diligence. This extended contract period means that market data about closings today is actually indicative of what buyers were doing one quarter ago. When looking at the objectives and milestones for each transaction, it's important to work with a broker who has been actively watching the pulse of the market for years, and understands the mindset and shifting tides of all stakeholders involved.
Estimated Values
When determining the value of a property, there is a lot of number crunching required. From bank appraisals to neighborhood comps, all this data is not contained in one place, but spread across various government offices and credit agencies. That’s what makes the data that my team uses different. Our consolidated and verified data provides us with a comprehensive understanding of the current market—what it will bear in broker speak. For sellers, this means listing your property at a price that will not only entice buyers, but lead to competitive offers. Conversely, for buyers, having accurate financial data allows us to advise on how to make targeted and strategic offers, which will favor your offer over other bidders.
Shop Talk
Beyond the headlines and the data are the conversations I'm having with other brokers about what we’re seeing in the market. The network of people I know are leaders in their fields who work with clients across the globe to consider the best options for their real estate portfolios, from a cabin in Aspen to a brownstone in Manhattan. If you want to know what we’re hearing and seeing, the only way is to talk with a broker. Real estate is often a long-term investment, so the expected return shouldn’t be short-term focused.
The answers you receive are only as good as the data you have, which is why I always rely on good data. If you want my team to analyze what is best for you, contact me to have a chat.
All the best,
Toni Haber
