The Manhattan real estate market experienced a 17% increase in signed contract volume compared to the same quarter in 2024. Factors for the increase include an acceptance of higher mortgage rates, persistent inflation concerns, increased local and international buyers, and a return-to-office trend. Additionally, more inventory, realistic seller pricing, and attractive buying opportunities may be contributing to the uptick.
Brooklyn, however, faced challenges, likely due to limited inventory. Meanwhile, the luxury sector saw impressive gains—contracts for properties priced $5–10 million rose 47% from February, while those above $10 million increased 34%. Midtown, once considered past its prime, is experiencing a resurgence, driven by new office developments and demand for walkable convenience.
Ultra-Luxury Properties Lead the Pack: 45 homes in Manhattan asking $4 million or more inked deals between March 24 and March 30, according to Olshan Realty’s weekly report. The total, up from 31 properties in the previous period, marked the largest number of contracts signed since mid-December 2021, when 54 homes found buyers.
Brooklyn notched 32 contracts — six condos, one co-op and 16 houses — between March 24 to March 30. The total contract volume was $74 million on homes asking at least $2 million, according to Compass’ weekly contracts report.
Fare Act: The Fare Act was voted in by Mayor Eric Adams and is set to go into effect on June 11, 2025. This Act means tenants can no longer pay broker fees to the landlord's agent or anyone who advertises a rental listing on behalf of the landlord. Landlords will now be responsible for commissions. REBNY filed a countersuit in December that may impact the outcome of this law.
NYC Composting Now Mandatory – Here’s What You Need to Know: The Department of Sanitation has officially rolled out curbside composting fines, which went into effect on April 1. That means all food scraps must be placed in labeled composting bins and set out for collection on the same day as your recycling.
NAR’s Policy Update - A Step Toward More Homeowner Choice: The National Association of Realtors (NAR) has introduced the Multiple Listing Options for Sellers Policy, signaling a shift toward greater marketing flexibility for homeowners. This policy will operate alongside the existing Clear Cooperation Policy, acknowledging that previous rules limited consumer choice.
While we believe homeowners—not a trade association—should decide how to market their homes, this change marks progress. It also reinforces what we have championed all along: greater flexibility and better results. With our Compass 3-Phased Marketing Strategy, Compass has remained ahead of the curve, offering sellers the choice they deserve.
As always, please reach out with any questions.
