As we ease into the warmer months, we hope your unofficial start to summer has been a positive one. With the official beginning just around the corner on June 20th, we anticipate an active and promising season ahead.
The month of May brought renewed energy to the real estate market following the more tempered pace seen in April. While broader economic factors—including inflation concerns and uncertainty surrounding trade and tax policies—continue to influence investor sentiment, early reactions to the proposed tax bill suggest potential relief for high-net-worth individuals. However, its ultimate impact remains to be seen, pending legislative developments in the Senate.
‘Wait and See’: We are observing a familiar trend: many prospective buyers are taking a cautious, wait-and-see approach. Historically, these moments of hesitation have presented exceptional opportunities for those willing to act. In times of limited inventory, decisiveness often provides a competitive edge—particularly when quality properties are few and far between.
While interest rates, pricing, and economic uncertainty are frequently cited as barriers to homeownership, the most pressing concern may actually be access to high-quality housing. Replacement costs are rising rapidly, and the value of well-located, thoughtfully renovated or newly constructed properties is expected to increase significantly in the near term.
Rental Market: We’re seeing an incredibly active rental market, even with bidding wars on prime units. See our video on this here.
Luxury Market Sees Strong Activity: May was a robust month with - 183 luxury contracts signed above $4M in Manhattan, marking the second-highest monthly total since Olshan began tracking in 2006.
Last week there were 29 properties priced at $4 million or more entering contract, according to the latest report from Olshan Realty. The deals included eight townhouses and 21 condominiums. While the number of contracts was down from the previous week’s 55, which was the highest weekly total since November 2021, overall momentum in the high-end segment remains strong.
Brooklyn also saw healthy activity, with 29 contracts signed for homes asking $2 million or more between May 27 and June 1. The total contract volume reached $87 million, a notable increase from $74 million the previous week. Comparatively, during the same period last year, just 14 contracts were signed, totaling $45.5 million, highlighting the borough’s continued growth and demand in the luxury tier.
FARE Act: The NYC Council passed the Fairness in Apartment Rental Expenses (FARE) Act on November 13, 2024. It becomes a law on June 11, 2025, requiring landlords to cover broker fees when they hire an agent to market a rental unit — rather than passing those costs to tenants. Importantly, if a renter chooses to hire their own broker, they are still responsible for that broker’s fee.
Zillow Vs. Homeowner Choice: Zillow now requires any listing publicly marketed by an agent—such as Compass Coming Soon—to be entered into the MLS within one day, or it will be permanently banned from appearing on Zillow. This move has raised concerns across the industry. Critics say it limits agent and homeowner control, especially over how pricing history, days on market, and buyer inquiries are managed. Zillow continues to monetize listings by selling leads—often without agent or client consent—while claiming to act in the consumer’s interest.
What This Means for Compass Clients: This policy does not affect Compass Private Exclusives, and NYC already follows similar 1-day rules due to MLS guidelines. We advise our clients to continue leveraging the 3-Phased Marketing Strategy, helping you choose the best path for your unique situation.
We believe in choice over control. Homeowners should decide how their home is marketed—not portals or trade associations.
As always, please reach out with any questions.
