What’s happening in the Brooklyn and Manhattan housing markets right now?

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Welcome to October

As we enter October, rates have eased a bit and we continue to see steady buyer activity. While overall activity has been favorable, demand remains selective, with neighborhood and property specifics driving outcome. Check out this months update for additional insights, curated articles and fun events in NYC.
 

The Big Picture

  • Rates: Based on some recent rate quotes I’ve seen, 30 year fixed rate jumbo loans are in the low 6s. With higher down payments and high 700+ plus credit scores, I’ve hear rate quotes in the 5s.
  • Inflation: Prices are running about 3% higher than a year ago. That’s down from earlier peaks, though future trends are uncertain – tariffs and energy could push costs up, but certain other factors may keep them contained. We’ll need to wait and see. The Fed has signaled it will respond to the data rather than follow a fixed path.
  • Equities: The stock market has been strong, but some analysts note risks ahead. Heavy reliance on AI-linked companies, the upcoming earnings season, and shifting policy news could add volatility this fall.
  • National vs. NYC Housing: Across much of the U.S., inventory is rising faster than sales, giving buyers more leverage. NYC is holding up better with steady sales volume and prices.

Manhattan Market Summary

  • Manhattan continued to perform well in 3Q25: 3,281 closings (+5% Year over Year), the strongest third quarter since 2022; sales volume ~$6.56B; contracts rose for the sixth straight quarter; DOM 103 (second-lowest since 2018); inventory ~6,500, broadly stable
  • Prices advanced: median $1.225M (+7% YoY); avg PPSF $1,792 (+5% YoY), helped by an active luxury segment and higher condo share. Deals >$3M climbed ~20% YoY; resale co-op and condo sales each improved for the seventh consecutive quarter

Brooklyn Market Summary

  • Brooklyn rebounded after a slow summer. Active supply is now ~3,500; new listings were down ~15% Week over Week (likely resulting from the holiday); contracts signings were up 11.5% WoW and 12.5% YoY, signaling improving liquidity despite rates north of 6%
  • Seasonality is uneven across sub-areas, creating cross-neighborhood opportunities for buyers and making timing/positioning crucial for sellers. With supply growth slowing and contracts trending up vs. last year, Q4 enters on relatively firm footing, though buyers remain price/condition sensitive

Buyer Tips

  • Lock in rates when favorable; use float-down options when available.
  • Renovated homes may cost less long-term than lower priced “projects” once you factor in financing, taxes, utilities, and renovation costs.
  • Look beyond prime markets and into 2nd tier markets which can offer better $/SF spreads with similar lifestyle appeal.
  • Negotiate for closing-cost credits, sponsor incentives, or seller-paid rate buydowns in new development.
  • Top-condition listings move fast; watch 3–6 week windows for price cuts or concessions on stale inventory.
  • Cash offers are better positioned in bidding wars – explore your options and whether a cash offer is possible (family, securities loans, post-closing mortgage take-outs, etc.)

Seller Tips

  • Benchmark against today’s comps and DOM bands; avoid overpricing that forces later cuts.
  • Fresh, competitively priced listings in early October capture motivated fall buyers.
  • Spotlight monthly carry costs (taxes + charges) to strengthen appeal versus nearby listings.
  • Frame your home against direct submarket peers (block-by-block in Brooklyn, building-by-building in Manhattan).
  • Light upgrades (paint, lighting, floors) and staging often yields better ROI than the first $50–100K discount.
  • Rate buydowns, concession credits, and flexible closings help pull hesitant buyers across the line.
As rates, earnings, and policy headlines inject more volatility into Q4, the edge may favor buyers (more generally) and sellers who use data-driven, neighborhood-level strategy.
 
Enjoy this month’s newsletter, including curated articles, market insights, and upcoming local events below. Have a great month!
 
Also, if you’re thinking about a move or simply curious about your options, I’d be happy to connect for a no-pressure conversation tailored to your goals. Don’t hesitate to reach out!
 
All the Best,
Steve