Real Estate Insights

NYC Housing Market Update​

February 2025

• Overall Market:

  • Average Sale Price: $2.55M | Median Sale Price: $1.30M

  • PPSF: $1,538 | DOM: 204

  • Average Discount: 8%

  • Inventory: 5,909 | Contracts Signed: 789

• Condos:

  • Avg Sale Price: $3.36M | Median: $1.79M

  • PPSF: $1,769 | DOM: 215

  • Average Discount: 7%

  • Inventory: 3,103 | Contracts Signed: 392

• Co-Ops:

  • Avg Sale Price: $1.69M | Median: $975K

  • PPSF: $1,101 | DOM: 182

  • Discount: 9%

  • Inventory: 2,589 | Contracts Signed: 386

• Houses:

  • Avg Sale Price: $8.73M | Median: $7.45M

  • PPSF: $1,602 | DOM: 392

  • Discount: 16%

  • Inventory: 217 | Contracts Signed: 11

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Despite mortgage rates averaging nearly 7% in January, the New York City housing market demonstrated resilience, with 1,598 new contracts signed—a 10.7% increase year-over-year, though slightly lower than December. Historically, contract activity slows in the winter months before rebounding in the spring, and this elevated starting point suggests a promising outlook for the coming months.

As contract activity increased, inventory declined, with the number of homes on the market falling 3.5% year-over-year to 14,840. While sellers have been more active—evidenced by a 12.6% annual increase in new listings—the pace of sales since late 2024 has outstripped supply, exacerbating the inventory shortage.​

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The market remains balanced despite strong buyer demand, as pricing adjustments have kept transactions moving. The median contract price declined 3.8% year-over-year to $890,000, reflecting strategic pricing by sellers in response to elevated mortgage rates. Additionally, the sale-to-list ratio rose to 95.9%, indicating improved alignment between buyers and sellers. The citywide median asking price dropped 2.1% to $1.075M, with Manhattan seeing the most significant decline (-6.3%), while Brooklyn (+4.8%) and Queens (+12.0%) experienced price growth.

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Brooklyn remains highly competitive, with a record 34 neighborhoods surpassing a $1M median asking price, up from 28 last year. In Queens, rising condo sales continue to drive price increases, as new developments expand the condo market share from 26% to 34% year-over-year. Meanwhile, co-op inventory has declined 6.3% annually, continuing a trend since mid-2021, whereas condo inventory rose 3.0%. Given co-ops’ lower price points and more favorable price-per-square-foot ($526 vs. $1,453 for condos), they may regain buyer interest in 2025.

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Looking ahead, mortgage rates remain a key factor in NYC’s housing trajectory. While rates are expected to stay elevated, the market is showing greater stability than in previous years, with buyers and sellers adjusting to sustained higher costs. This steadiness should support ongoing transaction growth, creating opportunities for both buyers and sellers in the months ahead.

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National Report

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Inflation saw a slight uptick, while the Federal Reserve maintained its benchmark interest rate. Mortgage rates dipped below 7%, and stock markets remained elevated, albeit with periodic volatility. Meanwhile, national and international political landscapes have been marked by significant and rapidly evolving developments, the economic and housing market implications of which remain uncertain. Consumer confidence declined across all demographic groups, with expectations for personal finances and both short- and long-term economic conditions weakening, according to the University of Michigan’s February Surveys of Consumers.

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The housing market followed its typical seasonal pattern, with January bringing a substantial rebound in new listings—a trend expected to accelerate in the coming months. This influx of inventory is likely to drive sales activity leading into the spring market, historically the most competitive period of the year, often resulting in peak median home prices. While existing-home sales in January fell sharply from December (-27%), they increased by 2.6% year-over-year. It is important to note that January’s closed sales primarily reflect contracts signed in December, a period traditionally affected by the mid-winter holiday slowdown. Sales data from the next two months will provide a clearer picture of the market trajectory in 2025.

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On a year-over-year basis, median sales prices rose by 5% for single-family homes and 2.9% for condos and co-ops. Market dynamics showed a mix of competitiveness and prolonged transaction timelines: 47% of homes sold within a month, 15% closed above the asking price, and the median days on market stood at 41 days—though this figure is expected to decline as newly listed properties drive sales activity.

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Breaking down buyer trends, first-time homebuyers accounted for 28% of purchases, while investors and vacation-home buyers comprised 17%. Cash transactions represented 29% of total sales, and the majority of buyers (84%) purchased in suburban or rural areas. The market continued to reflect the effects of rising home prices and increased participation from higher-income buyers. Sales of homes priced at $1 million or more surged 27% year-over-year, whereas sales of properties under $250,000 declined, underscoring the affordability challenges in lower price segments.

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Please be aware that reports provide broad generalizations summarizing conditions and trends across numerous local markets. While the data is sourced from reputable institutions, there may be occasional inaccuracies. National reports represent a generalized view of values, conditions, and trends across diverse markets, and data from reliable sources may contain errors and are subject to revision. Additionally, figures from previous periods may be labeled as preliminary. All numerical data should be considered approximate.