New York City’s real estate market typically begins the year on the sleepy side. But, this time around, there’s apparently no waiting for the spring buying season, according to a report by StreetEasy.
New York City’s real estate market remains steady as buyer demand holds strong and sellers adjust pricing strategies to match market conditions. January saw 1,598 new home contracts signed—a 10.7% increase from last year, despite the seasonal slowdown from December. This uptick signals a potentially active spring market, with buyers eager to capitalize on strategic pricing.
Market Trends: Inventory Tightens as Buyer Activity Increases
As contracts rise, NYC’s inventory is tightening, with total active listings dropping to 14,840—a 3.5% decline year-over-year. However, new listings rose 12.6% from last January, indicating sellers are becoming more active as they adjust expectations to align with buyer affordability.
While demand remains strong, the median contract price dipped 3.8% year-over-year to $890,000, reflecting sellers’ willingness to price competitively amid high mortgage rates. This approach has increased the median sale-to-list ratio to 95.9%, up from 95.3% last year, suggesting that buyers are seeing more value in today’s market.
Manhattan Homes Under $1.5M: More Affordable Options Emerge
In Manhattan, the median asking price dropped to $1.55M—a 6.3% decline from last year. Notably, Greenwich Village saw a significant 31% drop in median asking prices, falling to $1.6M since November, creating prime opportunities for buyers in this highly sought-after neighborhood.
Meanwhile, Brooklyn’s market remains competitive, with the median asking price at $1.1M—a 4.8% increase year-over-year. With a record 34 neighborhoods now exceeding the $1M mark, Brooklyn continues to attract buyers seeking a balance of space, amenities, and relative affordability.
Co-ops Gain Favor Among Buyers and Sellers
With high mortgage rates keeping some sellers on the sidelines, co-op inventory has declined to 5,705 active listings—a 6.3% year-over-year drop. In contrast, condo inventory is up 3.0%, now sitting at 5,939 available units. This shift may drive renewed interest in co-ops, which traditionally offer lower price points per square foot and a more cost-effective entry into the market.
In Queens, co-ops continue to provide excellent value, with two-bedroom units listing at a median price of $425,000—a significantly more affordable option compared to Manhattan and Brooklyn.
What’s Ahead for NYC’s Spring Market?
As seller participation increases and mortgage rates stabilize, the NYC real estate market is well-positioned for a strong spring. While rates remain elevated, the consistency allows buyers and sellers to plan more effectively, fostering a more balanced and transparent transaction process.
Moving forward, the market’s trajectory will largely depend on interest rate movements. A sharp drop could reignite buyer competition, while sustained high rates may keep pricing adjustments in motion. Regardless, NYC’s real estate market continues to prove its resilience, with 2025 shaping up to be a year of opportunity and renewed momentum.
Thinking of Buying or Selling? Let’s Connect.
With market conditions shifting, now is the time to explore your options. Whether you’re considering a move, seeking investment opportunities, or simply want expert insight into NYC real estate, reach out today for a personalized consultation. Let’s navigate this evolving market together!
