NYC Market Update – February 2025Welcome to February!I hope you enjoyed those snowy January days! Despite the winter chill, the real estate market has been incredibly busy with buyers out in force actively shopping for homes. Open houses in January were some of the most attended I’ve seen in a while, in many cases resulting in multiple offers within a week or two of the first showing. When open houses are this busy, it usually signals a competitive market ahead, and that’s exactly what I’ve been seeing. If mortgage rates decline this year, I expect it will only intensify demand, increase competition and put further pressure on prices. When buying in a market like this it’s best to be prepared, informed, realistic and proactive. In this month’s edition of my newsletter, I’ll recap recent market performance, share expectations for the year ahead, and highlight fun upcoming events happening locally. Brooklyn: Strong Growth & Rising DemandIncreasing Contract Activity – While closed sales dipped 8% year over year (YoY), contract signings rose 3% YoY and 13% quarter over quarter (QoQ), showing strong buyer demand. Rising Prices & Inventory – The median sale price grew 9% YoY to $795K, with three-bedroom+ units up 21% YoY in inventory. Luxury Market Resilience – High-end sales in the $2M+ market remain strong, pushing the average price up 8% YoY to $1.051M. New Development Dominance – New construction condos in Downtown Brooklyn and Greenpoint continue to attract buyers. Neighborhood Strength – Brooklyn Heights, Park Slope, and Prospect Heights saw the highest price growth, while South Brooklyn resale condo listings surged 65% YoY.
Manhattan: Luxury Market & StabilityLuxury Market Outperforms – The $5M+ market is booming, especially in Tribeca, the Upper West Side, and new developments. Stable Resale Market – While overall transactions remain below pre-pandemic levels, high-end condos and co-ops show strength. Foreign & Institutional Buyers Driving Sales – Luxury properties continue to be a safe haven for cash-rich investors. Rising Condo Demand vs. Co-op Slowdown – Younger buyers prefer modern condos, leading to co-op values stagnating. Mixed Rental Market – Luxury rentals remain in high demand, while mid-tier properties are seeing increased incentives from landlords.
2025 Real Estate Market Themes for Brooklyn & ManhattanInventory Growth & Stabilizing Prices – Both boroughs are seeing more listings, helping to balance the market and moderate price hikes. Brooklyn is leading in transaction growth, particularly in new developments. Luxury Market Strength – The $5M+ market remains robust, particularly in Manhattan’s high-end developments and Brooklyn’s prime neighborhoods. Foreign & Institutional Buyers Continue Driving High-End Sales – NYC remains a stronghold for wealthy investors and international buyers. New Developments Leading Demand – Modern condos with top-tier amenities continue to attract buyers, while older co-ops face increased pricing resistance. Brooklyn’s Market Outpacing Manhattan in Growth – Contract signings in Brooklyn are rising faster, driven by new development sales and continued strong demand. Shifting Preferences: Co-ops vs. Condos – Younger buyers overwhelmingly prefer condos, while co-op pricing remains a draw for value-conscious buyer
Looking Ahead to 2025:NYC’s real estate market continues to evolve, with rising inventory, continued but moderating price pressure, and sustained interest in high-end properties. Brooklyn remains a growth market, while Manhattan’s luxury sector is thriving. If mortgage rates continue to trend downward, we could see another highly competitive year in 2025. Beyond market insights, this month’s newsletter includes curated articles and local events that I hope you’ll find useful. Have a great month, and please reach out if I can assist in any way! |
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