May – 2025 Market Update

The LevinKong Team hopes you enjoyed the holiday weekend and the summer kickoff. In New York City, we welcome the warm weather and the highly anticipated outdoor activities synonymous with this season. We typically see a steady rise in activity throughout the spring market, punctuated by a summer slowdown. This year, our spring market kicked off early with incredible strength in late February, remaining that way until a buyer pullback began to emerge at the tail end of April. This modest decline was particularly evident in less prime locations and property types in Manhattan, while prime Brooklyn and Manhattan locales have maintained their strong momentum.

Even with signs of buyer hesitancy reemerging, the overall storyline is one of significant gains across the NYC market compared to recent years. This trend has been most notable in the luxury space, where fifty-five contracts above four million dollars were signed in Manhattan just last week. This marked the highest contract volume in that segment since the market peak of late 2016. Market segmentation with clear delineation in listing success is still prevalent. The sub-two million dollar segment is not performing as well as higher price points, undoubtedly a result of interest rates stubbornly remaining high, impacting many but not deterring cash buyers from the luxury arena.

Median sales price market-wide is up 5.8% year-over-year in Manhattan and 3% in Brooklyn. Six months of inventory represents a balanced market between buyers and sellers. There are currently 6.8 months of inventory in Manhattan (slightly skewed in favor of buyers) and 3.6% months of inventory in Brooklyn (a seller-favored market indication), where over 20% of sales are happening above asking price. Still, a significant 11.5% of transactions are occurring over ask across Manhattan, where pending sales volume is up a whopping 26% from this time last year. We do, however, predict marginal declines in activity are coming. All in all, the present and our expectations for the near future are much sunnier than the previous three-year period.

With the LevinKong Team by your side, you can confidently navigate the dynamic and intricate real estate market. Our decades of experience and data-driven, research-based approach are your best tools for success in this environment. We’re here to maximize your goals, protect your investments, and answer any questions you may have about the market or complex decisions.