T
he luxury home contract signings surged this season, with both Manhattan and Brooklyn showing significant year-over-year growth. According to Marketproof's monthly report, 293 new-development contracts were signed last month, the most since May 2023. This boom runs counter to common notions that the market slows after Q3 and sales fall as mortgage rates rise.

    The October performance was largely driven by the launch of two Naftali Group projects in late September, which accounted for 23 of the 61 luxury contracts signed. Had those launches happened a month later, it would have been "the same story" in November, according to Jason Thomas, Brown Harris Stevens Development Marketing's head of research and analytics.

    The October numbers still fell short of some nearly 500-contract months during the Covid rebound in 2021, but exceeded the three-year pre-Covid October average. More significantly, contract numbers in Manhattan and Brooklyn have returned to their historical averages despite mortgage rates that are 75 percent higher than they were pre-pandemic.

    Buyers signed contracts for 165 new-development units in Manhattan last month, more than double the 84 signed last October. The median sale price was $2.7 million and the median price per square foot was $2,212. Brooklyn netted 99 contracts in October, compared with 48 last year, with a median sale price of $1.5 million and a median price per square foot of $1,338.

    Queens was the only borough to see a decline in contract signings, from 35 to 29. The median sale price was $925,000 and the median price per square foot was $1,434. Despite this, Queens added the most new units, 167, through three sales launches.