NYC Housing Market: Prices, Trends, Forecast 2025-2026

Are you wondering what's happening with the current NYC housing market trends? Well, in early 2025, it's a bit of a balancing act. While mortgage rates remain high, the market is seeing increased transactions, with buyers and sellers finding common ground on prices. There is a decline in the inventory of homes for sale. Let's dive deeper into what's driving these trends and what it means for you, whether you're looking to buy, sell, or just stay informed.

Current NYC Housing Market Trends: A Balanced Act in Early 2025

Home Sales

One of the biggest takeaways from the start of 2025 is the surge in home sales. According to a February 2025 report by StreetEasy, the number of homes going into contract in NYC jumped by a significant 10.7% year-over-year. That's a pretty strong start to the year, considering the challenges that buyers are facing. While a 5.2% dip was observed from December of 2024, this can be attributed to the Winter holidays as fewer contracts are made during this period of the year. Contracts tend to pick back up from February through April.

Home Prices

Now, let's talk about prices. The citywide median asking price saw a slight dip of 2.1% year-over-year. The median price of homes entering contract also fell by 3.7% to $890,000. This suggests that sellers are becoming more realistic about pricing their homes to attract buyers in the current environment.

Are Home Prices Dropping?

While the overall median asking price is down slightly, it's important to look at the borough level. Manhattan saw a more substantial decline, with the median asking price falling 6.3% year-over-year to $1.55 million. Brooklyn, on the other hand, saw an increase of 4.8% to $1.1 million. Queens also experienced an increase, with the median asking price rising 12.0% to $700,000.

Comparison with Current National Median Price

Nationally, the median home price in December 2024 was around $407,500, showing a year-over-year increase of 6%. Clearly, NYC's housing market operates on a different level than the rest of the country. Even with recent price adjustments, the median asking price in NYC remains significantly higher than the national average.

Housing Supply

Another important factor influencing the NYC housing market is the housing supply. The total number of homes on the market has fallen to 14,840 units, a 3.5% year-over-year decline. Interestingly, sellers seem more willing to participate, with 3,020 homes newly listed in January, a 12.6% increase from the previous year. The pace of sales since September 2024 has been robust, creating a growing hole in NYC’s inventory.

Is It a Buyer's or Seller's Housing Market?

This is the million-dollar question, isn't it? Well, according to StreetEasy, the sales market remains balanced. There's no strong increase in the price point of homes new to the market. Sellers are being more strategic with their pricing, accommodating buyers who are facing budget limitations due to elevated mortgage rates.

Market Trends

Here's a breakdown of some key market trends I'm observing:

• Manhattan's Price Adjustments: Sellers in Manhattan, especially in neighborhoods like Greenwich Village, are strategically pricing their homes more affordably to attract buyers.
• Brooklyn's Hot Streak: Brooklyn remains a competitive market, with median asking prices topping $1 million in a record 34 neighborhoods.
• Queens' Condo Surge: Queens is seeing a rise in condo inventory, which is driving up asking prices in the borough.
• Co-op Comeback? With high mortgage rates, co-ops are becoming increasingly attractive to buyers seeking more affordable options. The median asking price per square foot (PPSF) was $526 for co-ops in NYC, compared to $1,453 for condos, this is a huge saving for buyers.

Impact of High Mortgage Rates

Let's not forget about the elephant in the room: mortgage rates. Currently hovering around 7% (as of February 2025), these rates are definitely impacting buyer affordability and market dynamics.

The report said: Though mortgage rates averaged nearly 7% in January, the number of homes entering contract continued to rise in New York City. The month saw 1,598 new home contracts, a 5.2% decline from December but a 10.7% year-over-year increase. Fewer homes typically enter contract in December and January following the winter holidays, but new contracts tend to pick back up from February through April as buyers resume their searches.

Here's how I see high mortgage rates playing out:

• Buyer Hesitation: Some potential buyers are likely delaying their purchases, waiting for rates to come down.
• Affordability Concerns: Higher rates mean higher monthly payments, making it more difficult for buyers to qualify for a mortgage.
• Price Negotiation: Buyers are likely to be more assertive in negotiating prices to offset the impact of higher rates.

What to Expect This Spring

Looking ahead to the spring, I expect the NYC housing market to remain in a state of tenuous balance. Resilient buyer demand and increased seller participation should continue to support transaction activity.

The following are things to watch out for:

• Mortgage Rate Volatility: Any significant swings in mortgage rates could disrupt the market. A sharp jump in rates could cool competition, while a sharp drop could favor sellers.
• Economic Outlook: The overall health of the economy will play a crucial role in shaping the housing market.
• Inventory Levels: Keep an eye on inventory levels. If the pace of sales continues to outpace new listings, inventory could shrink further, potentially putting upward pressure on prices.

Here is a brief overview of NYC Housing Market Trends:

Trend	Description
Home Sales	Strong start to 2025, with a 10.7% year-over-year increase in contracts.
Home Prices	Citywide median asking price down slightly, but varies by borough.
Housing Supply	Total inventory declining, but new listings are on the rise.
Mortgage Rates	Hovering around 7%, impacting buyer affordability.
Market Balance	Remains balanced between buyers and sellers, but could shift with rate changes.

My Two Cents

From my perspective, the NYC housing market is showing signs of resilience. Despite the challenges posed by high mortgage rates, buyers and sellers are adapting and finding ways to make deals happen. While I don't expect a dramatic surge in prices anytime soon, I also don't foresee a major crash. Instead, I anticipate a steady, gradual pace of activity, with the market continuing to navigate the complexities of the current economic environment.

As someone who's been following the NYC real estate scene for years, I can tell you that it's a market like no other. It's constantly evolving and full of surprises. So, whether you're a seasoned investor or a first-time homebuyer, it's crucial to stay informed and work with a knowledgeable real estate professional who can guide you through the intricacies of this unique market.

New York Real Estate Market Forecast 2025-2026

Thinking about buying, selling, or just plain dreaming about real estate in the Big Apple? Then you're probably wondering about the New York housing market forecast. Let's cut to the chase: Experts predict a modest but steady rise in home values in the New York metropolitan area over the next year. While a crash isn't expected, understanding the nuances of the market is key. Let's dig into the details!

What's Driving the New York Housing Market?

Before we dive into specific numbers, it's important to understand what influences the housing market in New York. Several key factors are at play:

• Interest Rates: Changes in interest rates directly impact mortgage affordability, influencing buyer demand.
• Economic Growth: A strong local economy generally leads to job growth, attracting more people and boosting housing demand.
• Inventory Levels: The number of homes available for sale significantly affects prices. Low inventory typically drives prices up.
• Demographic Trends: Population shifts and migration patterns influence housing needs and demand in different areas.

Home Price Forecast: A Closer Look

Let's take a look at what Zillow is predicting for the New York, NY metropolitan statistical area (MSA). This data, last updated in December 2024, gives us a glimpse into the expected price appreciation:

Region	Forecast for January 31, 2025	Forecast for March 31, 2025	Forecast for December 31, 2025
New York, NY	0.3%	0.7%	1.6%

As you can see, Zillow projects a gradual increase in home values. While the initial jump to January 2025 might seem small, the forecast suggests a steady climb throughout the year, culminating in a 1.6% increase by the end of December 2025.

How Accurate Are These Forecasts?

It's important to remember that forecasts are just predictions, not guarantees. Real estate markets are complex and can be affected by unforeseen events. However, Zillow's data is widely respected in the industry, and their forecasts can be valuable for understanding potential market trends. I always advise taking them as a piece of the puzzle, rather than the definitive answer.

New York Housing Market: How other Cities are expected to perform?

But what about the rest of New York State? Here's a breakdown of Zillow's forecasts for other metropolitan areas:

Region	Forecast for January 31, 2025	Forecast for March 31, 2025	Forecast for December 31, 2025
Buffalo, NY	0.4%	1.4%	4.3%
Rochester, NY	0.5%	1.8%	5.9%
Albany, NY	0.3%	1.1%	2.9%
Syracuse, NY	0.6%	1.9%	6.0%
Utica, NY	0.7%	2.3%	5.3%
Binghamton, NY	0.5%	1.8%	4.8%
Kingston, NY	0.3%	1.6%	6.6%
Jamestown, NY	0.8%	2.3%	6.0%
Glens Falls, NY	0.1%	1.1%	3.7%
Watertown, NY	0.4%	1.2%	3.0%
Ogdensburg, NY	0.6%	1.1%	2.6%
Ithaca, NY	0.3%	0.8%	3.2%
Corning, NY	0.6%	1.3%	2.8%
Elmira, NY	0.5%	1.2%	2.7%
Plattsburgh, NY	0.5%	1.3%	3.2%
Olean, NY	0.8%	2.2%	5.5%
Auburn, NY	0.4%	1.2%	4.5%

Looking at this data, it's clear that the New York housing market is not a monolith. Some areas, like Kingston and Syracuse, are projected to see more substantial growth than the New York City metro area. This highlights the importance of focusing on specific local markets when making real estate decisions.

Will Home Prices Drop in New York? A Crash Scenario?

While nothing is certain, a significant housing market crash in New York is unlikely in the near term. Several factors support this:

• High Demand: New York remains a desirable place to live and work, attracting people from around the world.
• Limited Inventory: The supply of homes, particularly in prime locations, is constrained, which helps support prices.
• Strong Economy: While economic conditions can fluctuate, New York's diverse economy provides a degree of stability.

However, a significant rise in interest rates or a major economic downturn could certainly impact the market. I always tell my clients to prepare for different scenarios and make informed decisions based on their individual circumstances.

My Personal Take: What to Expect and How to Prepare

Based on the data and my experience in the real estate industry, I expect the New York housing market to continue its gradual climb in 2025. While rapid price appreciation seems unlikely, a steady increase is a reasonable expectation.

Here's my advice:

• For Buyers: Don't wait for a crash that may never come. Focus on finding a property that meets your needs and budget. Be prepared to compete, especially in desirable neighborhoods.
• For Sellers: Now is still a good time to sell, especially if you're looking to downsize or relocate. Price your property competitively and highlight its best features.
• For Investors: Consider diversifying your portfolio and exploring opportunities in different areas of the state.

Looking Beyond 2025: A Glimpse into 2026

Predicting the New York housing market forecast for 2026 is challenging, but we can make some educated guesses. If interest rates remain stable and the economy continues to grow, we could see a continuation of the moderate price appreciation trend. However, any significant changes in these factors could alter the outlook. I will keep my eyes on other credible real estate sites to keep up with the news as it rolls out.

In Summary:

The New York housing market forecast suggests continued growth in 2025, albeit at a moderate pace. While a crash seems unlikely, it's crucial to stay informed and make decisions based on your individual circumstances. Remember to consult with a qualified real estate professional for personalized advice.

Top Real Estate Estate Markets in New York

Buffalo real estate market

The Buffalo real estate investment offers a surprisingly good deal with low prices and relatively high rental rates. The Buffalo real estate market is dominated by older homes. A majority of homes in the Buffalo housing market were built before World War 2. Interestingly, this also means that many small apartment buildings are designed to serve a population that rented small units close to their jobs.

For example, roughly a third of homes are single-family detached homes, while almost half take the form of small apartment buildings. This creates an excellent opportunity for those in the market for Buffalo rental properties. You could buy a small apartment building with multiple tenants for the cost of a single rental property in a more expensive New York real estate market.

Syracuse real estate market

Syracuse's real estate market offers cheaper property with a higher return on investment and a less hostile legal climate. It is one of the better choices if you want to invest in New York state. Another issue that factors into the equation is the job market. Lots of cities have a great quality of life but almost no one can afford to live there.

The Syracuse housing market ranked 6.3 out of 10 for its job market. That’s better than rural and much of upstate New York. And it is why there is a slow trickle of people moving in to replace those who leave. That’s why the Syracuse real estate market has a net migration of 5 or a stable population. This is in sharp contrast to the depopulation seen in most Rust Belt cities. It also means Syracuse's real estate investment properties will hold their value for the foreseeable future if they don’t appreciate it.

Albany real estate market

Albany is a steadily appreciating real estate market. While it isn’t as famous or hot as NYC, it offers an affordable entry point and a massive pool of perpetual renters. Though it may not be somewhere you want to live, many locals are choosing to stay and make their homes here. And that will continue to drive demand for Albany real estate investment properties as long as they are priced right.

Rochester real estate market

You can also consider Rochester. The Rochester real estate market is stable, offering slow appreciation, affordable properties to outsiders, and good returns. It has strong, long-term potential that is only buoyed if NYC collapses. And this is one of the reasons why being everything the Big Apple isn’t is in your favor.

The Rochester real estate market enjoys a healthy population profile. Roughly a quarter of the population consists of children, and many are likely to remain due to the healthy job market. It also means that the Rochester housing market won’t crash if the job market weakens the way San Francisco collapses whenever the tech bubble bursts. Others choose to remain here because of the low cost of living.