The Best Performing Neighborhoods in NYC

The Weekly Recap

America's banker Jamie Dimon released his yearly manifesto, I mean, letter to shareholders which you can read in its entirety here, US M&A activity slowed in 2023 while VC funding is down 50% YoY, bitcoin and tech outperformed expectations in Q1, short sellers made $848M in paper profits on bets against First Republic in March, US job openings fell below 10M for the first time since 2021 with economists hailing that as a positive sign, Signature Bank insiders sold $100M in stock during crypto surge, gold is nearing its all-time high and Hamptons home prices fell almost 8% YoY. If being single is the worst thing that's ever happened to you, Tinder will be offering a $500 per month membership and if you missed my NYC Real Estate Q1 Wrap Up last week, you can read that here.

The Best Performing Neighborhoods in NYC

NYC is back! Manhattan's population grew by over 1% last year, defying expectations and surprising experts as big cities like Boston, LA, Chicago and Philly all experienced drops in population in 2022. Manhattan's success isn't due to births or immigration, but a migration of people moving into Manhattan rather than out of it. Office vacancies are at an all time high but the rental market is still hot and incredibly dynamic indicating that the influx of people is still trending. Jonathan Miller, CEO of Miller Samuel, the appraisal and research firm, found that in the last quarter, cash transactions reached an all-time high, accounting for 57% of total sales. Within the luxury segment, 75% of sales exceeding $5 million were completed in cash.

Here are some of the best performing neighborhoods in NYC from a sales perspective:

Midtown Manhattan: This may come as a surprise to most but it continues to be one of the most desirable neighborhoods in New York City. With its iconic skyscrapers, world-renowned shopping and dining, and easy access to transportation, sales activity remains strong in this area. In Q1 of 2023, Midtown Manhattan saw a 15% increase in the number of sales compared to the same period last year. The average sale price for a Midtown Manhattan apartment is $2.4 million, a 10% increase from the previous year.

Williamsburg: probably to most popular neighborhood in Brooklyn ever, and its popularity shows no signs of slowing down. In Q1 of 2023, Williamsburg saw a 12% increase in sales compared to the same period last year. The average sale price for a Williamsburg apartment is $1.1 million, which is a 9% increase from the previous year.

Park Slope: is another highly desirable neighborhood in Brooklyn, known for its beautiful brownstones and tree-lined streets. In Q1 of 2023, Park Slope saw a 14% increase in sales compared to the same period last year. The average sale price for a Park Slope apartment is $1.8 million, a 6% increase from the previous year.

Long Island City: is one of the biggest pockets of value in all of NYC, known for its waterfront views and proximity to Manhattan. In Q1 of 2023, Long Island City saw a 10% increase in sales compared to the same period last year. The average sale price for a Long Island City apartment is $1.3 million, a 7% increase from the previous year.

Upper West Side: is a classic New York City neighborhood, known for its beautiful pre-war buildings and proximity to Central Park. In Q1 of 2023, the Upper West Side saw a 9% increase in sales compared to the same period last year. The average sale price for an Upper West Side apartment is $2.5 million, a 12% increase from the previous year.

Market Performance

Markets are closed today, here is how other asset classes performed as of yesterday's opening bell.

NYC Market Update

Here is a view of new inventory that has come onto the NYC market as well as newly signed contracts that have taken place over the last week.

Mortgage Rate Update

Mortgage rates continue to trend down entering the traditional spring homebuying season. Unfortunately, those in the market to buy are are facing a number of challenges, not the least of which is the low inventory of homes for sale, especially for aspiring first-time homebuyers.

News You Can Use

• JPMorgan's Dimon Says US Banking Turmoil Not Over, Sees Long Repercussions Reuters

• US Consumer Spending Slows, But Seen Boosting First- Quarter GDP growth Reuters

• Luxury Condo Sales at 130 William Provide Residential Resurgence in Downtown NYC NY Post

• Bitcoin and Tech-Heavy Nasdaq Were Among Best-Performing Assets in Q1 Axios

• US Job Openings Fall Below 10 Million for First Tgime Since 2021 Bloomberg

• Wall Street Deal Making Dives in Q1 Axios

• Lending Conditions, Term loans Tighten "Sharply": Dallas Fed Survey Axios

• Betting Against First Republic, Short Sellers Made $848m In March Reuters

• Venture Capital Funding in Start-Ups Halves As Tech Downturn Bites Financial Times

• Bank Turmoil Collides With Tech Slump in Battered San Francisco Bloomberg

• Signature Bank Insiders Sold $100M in Stock During Crypto Surge Fox Business

• Hamptons Home Prices Fall For the First Time Since 2019 NY Post

• March's Bank Failures Show Options Can Be Tricky Even When Retail Traders Pick Big Winners CNBC

• Tinder's CPO on Tinder Vault, the Company's Anticipated $500 per Month Offering Fast Company

The Deep Insight

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