NYC Real Estate Market Update – January 2025
The New York City real estate market kicked off 2025 with some significant trends, with both Brooklyn and Manhattan showing interesting shifts in pricing, inventory, and contract activity. Whether you're looking to buy or sell, understanding these market movements can help you make the best decisions. Let's dive into the latest updates.
Brooklyn Market: Prices Up, But Buyer Activity Slows
Brooklyn’s real estate market continues to see price growth, with the average sale price reaching $1.37 million, an increase of 20.5% year-over-year. The median sale price also climbed, now sitting at $1.1 million, up 18.3% compared to last year.
However, while prices are rising, contract activity is slowing down. The number of contracts signed in January dropped nearly 17% from the previous year. This suggests that some buyers may be stepping back as prices continue to climb.
When looking at different property types, we see mixed trends:
- Condos saw a 22% increase in average sale price year-over-year, but contract signings have slowed down. This could indicate that higher price points are creating hesitation among buyers.
- Co-ops remained strong, with the average sale price jumping 13%, but fewer deals are closing.
- Houses continued to appreciate, with prices rising 16% year-over-year, reflecting continued demand in this segment.
Despite the slowdown in contract activity, homes in Brooklyn are selling faster. The average days on market dropped by nearly 13%, meaning buyers are making quicker decisions when they do enter the market.
Manhattan Market: Shifting Demand and Pricing Adjustments
In Manhattan, the real estate market showed some contrasting trends. The median sale price surged by 16.7%, now at $1.23 million, reflecting continued buyer demand. However, condo prices dipped slightly, suggesting a shift in focus toward more mid-range properties rather than ultra-luxury units.
Co-ops had an especially strong month, with the average sale price soaring 26% year-over-year. This indicates that affordability-conscious buyers are still driving demand in this segment.
One of the biggest stories in Manhattan is the townhouse market. While prices have dropped significantly—down over 40% compared to last year—contract activity has surged by 157%. This suggests that buyers are jumping in to take advantage of these adjusted price points, making townhouses a hot opportunity for those looking to buy at a discount.
What This Means for Buyers and Sellers
Overall, both Brooklyn and Manhattan remain strong markets, but we are seeing some shifts in buyer behavior. Here are the key takeaways:
- Prices are still rising, but demand may be cooling due to higher costs.
- Manhattan’s co-op market is thriving, with significant price increases.
- Townhouses are experiencing major price drops, but more buyers are entering the market to take advantage of these lower prices.
- Brooklyn homes are selling faster, with the average time on the market decreasing by almost 13%.
For buyers, this could be a great time to explore opportunities in townhouses and co-ops, while those looking for condos may want to be more strategic with pricing. Sellers should take note of shifting demand and price their properties competitively to attract buyers in a changing market.
If you're thinking about making a move, whether buying or selling, now is the time to strategize. Let’s chat about the best approach for you in today’s market!