Happy New Year! I hope had a great holiday. It’s a new year and a new market!

In this month’s edition I recap year-end activity in Brooklyn and Manhattan and provide some thoughts on 2025. I’ve also included some articles of interest and upcoming local events I hope you’ll enjoy.

Brooklyn and Manhattan Real Estate Markets: 2025 Outlook

As we enter 2025, the Brooklyn and Manhattan real estate markets are poised for another year of opportunities and challenges.

December’s supply data was consistent with seasonal patterns as inventory and new listings fell sharply and sellers remained on the fence until the new year. Despite the drop in listings, buyer activity remained strong with contract signings in Brooklyn and Manhattan up year-over-year an impressive 30.3% and 28.3% respectively. The high levels of demand, particularly for this time of year, are encouraging and a sign of strength as we head into the new year. This likely sets the stage for another year of competition for properties.

Brooklyn continues to shine as a standout market, with median sales prices rising 7.2% year-over-year. The combination of tight supply and high buyer demand is expected to push prices higher, particularly in more sought-after neighborhoods like Park Slope, Williamsburg, Cobble Hill, etc. While Manhattan experienced a slight dip in year-over-year median prices (-3.5%), demand for luxury properties and prime locations has remained strong.

Looking ahead, the early months of 2025 should bring a surge of new listings as sellers re-enter the market post-holidays. With demand likely exceeding supply, negotiating leverage should favor sellers over buyers during the first half of 2025. Markets can shift quickly however and sellers shouldn’t get too comfortable. Interest rates, the economy, and the political environment can create headwinds in varying degrees and need to be proactively monitored. Additionally, a poorly priced and marketed listing can be a problem in any market. For buyers, elevated interest rates, economic uncertainty, affordability challenges and competition for properties will continue to be a theme in 2025. With some rate relief expected as the year unfolds, we may see improved affordability and resulting opportunities. In order to take advantage of opportunities when they arise, buyers should have their financing lined up, their agency agreements in place and be prepared to act quickly and decisively on properties of interest.

Navigating this market requires patience, expertise and a thick skin. As they say, fortune favors the brave! As always, I’m here to help. Whether you’re considering buying, selling, or just keeping an eye on the market, feel free to reach out—I’d love to guide you through every step of your real estate journey.

Here’s to a successful, joyful, and prosperous new year for you and your loved ones! Cheers to 2025!

All the Best,
Steve