October – 2025 Market Update

The LevinKong Team hopes this message finds you well and enjoying Fall in the city. As October comes to a close, we reflect on a year of both remarkable activity and notable shifts in the New York City real estate market.

This year, our Manhattan and Brooklyn markets experienced a lot of movement. The luxury segment, in particular, stood out as a bright spot—participants were largely unaffected by rising interest rates, many of whom paid in cash, bolstered by a strong stock market. Lower-priced properties also performed well, often bought with cash and frequently with parental assistance — a testament to continued confidence among buyers at all levels.

However, starting in September, activity slowed across the board. Both the luxury and entry-level segments experienced a slowdown, while the middle market—approximately $1.5 million to $2.5 million—became our bright spot this fall.

In Manhattan, closed transactions are slightly down from last month, but remain up 15% compared to this time last year. The average price per square foot has decreased by 5% month-over-month. Inventory currently stands at 6.2 months—a slight increase of 5.1% from last month but still 8.8% lower than a year ago, slightly favoring buyers.

Brooklyn, which has consistently been a very active market, saw its average price per square foot decrease by 4.3% month-over-month but remain up year-over-year. Monthly contract activity was down 8.6% from last month, which was unexpected at this time of year, though contracts are still up 4.6% compared to last year, indicating underlying strength.

Interest rates moved slightly higher starting in September, which took a lot of wind out of the sails of many potential buyers. Despite the Fed’s rate cuts, mortgage rates haven’t eased as hoped, leading to a slowdown—particularly at lower price points where buyers are more rate-sensitive. We expect this trend to continue through the fall.

Adding to the cautious mood is the upcoming NYC mayoral election. Many buyers are in a wait-and-see mode, which is typical ahead of political elections. Historically, the market has rebounded post-election, and we anticipate a return to full activity by next spring’s busy season.

We remain optimistic about a strong 2026, and our team continues to help clients navigate these shifting conditions with confidence, insight, and professionalism.

The NYC real estate market is vibrant and full of opportunities. With the LevinKong Team, you can confidently navigate this 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 or concerns you may have about the market or complex decisions. Our unwavering commitment to your success and our dedication to supporting you every step of the way are a testament to how much we value and care for our clients.

As always, the LevinKong Team is here to help you achieve your real estate goals. Please reach out to us with any questions or for personalized advice.