August 15, 2025
As we enter the heart of summer 2025, the New York City real estate market is showing some interesting shifts that both buyers and sellers should be paying attention to. After a volatile couple of years, the market is finding its footing — but not without a few surprises.
For starters, inventory levels across the city have ticked up slightly from the record lows we saw last year, but it’s still nowhere near enough to satisfy demand. Buyers are still dealing with competitive bidding situations, especially in neighborhoods with good transportation access and high-quality schools. Properties that are move-in ready and well-priced are flying off the market, sometimes in a matter of days.
The luxury market, however, is moving a little differently. With higher interest rates still lingering, a lot of high-net-worth buyers are opting for cash deals. In fact, cash sales in Manhattan reached nearly 70% this past quarter, a record high. Financing deals are happening, but buyers with contingencies are finding it tougher to win offers in prime locations.
On the rental side, things remain tight. Rents are still elevated, particularly in Manhattan and Brooklyn, where we’re seeing continued demand from renters who’ve been priced out of the sales market. There’s also a growing trend of people moving back into the city after briefly testing the waters in the suburbs.
As a realtor working through these market conditions, my advice is simple: if you’re buying, be prepared. Have your pre-approvals ready, understand your budget, and be willing to move fast. Sellers are still in a favorable position, especially if they’re listing a property that doesn’t need much work. That said, with more inventory slowly creeping back in, pricing strategy is more important than ever.
Overall, New York City real estate is proving its resilience again. The market isn’t crashing, but it’s definitely evolving. Whether you’re looking to buy, sell, or invest, timing, preparation, and local knowledge remain key.
Disclaimer: This content is meant for informational purposes only and is not intended to be construed as financial, tax, legal, or insurance advice.
