The next three months could bring meaningful shifts to the market. The market is betting the Fed is likely to lower rates, though mortgage rates may only dip slightly. Tariffs, rising construction costs, and possible tax breaks are reshaping the economic landscape. In NYC, the upcoming mayoral race adds political uncertainty, especially around housing policy. For buyers—particularly in the luxury market—this may be a rare window of opportunity amid economic adjustment.
International Buyers: The U.S. dollar has fallen nearly 11% since the start of the year—its worst performance in over 50 years—reshaping the global real estate landscape. For international buyers, particularly those using European currencies, NYC property prices now appear more than 10% lower purely due to exchange rate shifts. While there’s no panic or price collapse locally, and domestic buyers remain cautious amid ongoing uncertainty, the international perspective tells a different story: New York City is quietly on sale.
Mid-Summer Market: The July 2025 housing market showed mixed trends, with the average sale price dipping 0.5% from June to $2.17M, down 4.8% year-over-year, while the median sale price jumped nearly 10% to $1.34M, reflecting stronger mid-market activity. Price per square foot rose slightly to $1,576, and days on market increased to 194, up from 185 in June. Buyers saw a bit more negotiating power with average discounts at 7%. Inventory dropped 3% month-over-month but remained higher than last year, and while contracts signed declined to 810, they were still up 5.1% from July 2024—signaling steady buyer interest despite a seasonal slowdown.
Luxury Market: Only nine contracts were signed last week in Manhattan at $4 million and above, marking a sharp drop of 16 fewer deals than the week prior. That included just 8 condos and 1 townhouse—a strikingly low figure. In fact, this was the slowest week for high-end contracts since late September 2023, when only 8 were signed. The total dollar volume came in at $79.8 million, underscoring a clear summer slowdown in the luxury market. 2025 is shaping up to be one of the strongest years for the luxury segment—it’s to be seen if this is a short-lived blip or the start of a trend.
Cash Vs Financing: While Manhattan’s luxury market remains dominated by cash, the outer boroughs tell a different story. In Staten Island, 77% of home sales were financed, followed by 66% in Queens, 60% in the Bronx, and two-thirds in Brooklyn—despite its soaring prices and booming development. Cash buyers dominate both ends of the market: wealthy individuals in areas like Noho and Central Park South (where 93% and 85% of sales were all-cash), and budget buyers snapping up properties under $250,000. Citywide, cash remains king—especially in Manhattan, where 60% of 2025 sales so far have closed without financing.
In Challenging Market Compass Posts Its Strongest Quarter: In Q2 Compass agents….
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closed 73,025 transactions in Q2, an increase of 20.9% year-over-year, while transactions for the overall market decreased by 0.9% – outpacing the market by 22%.
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closed $78.3 billion in sales volume, an increase of 20.3% year-over-year, while the overall market increased just 1.4%.
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grew quarterly market share to 6.09% – our highest market share in company history, up 0.96% year-over-year.
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