The global tariff trade war sparked on April 2 has rattled markets, creating uncertainty for importers and investors alike — and causing many to hit pause on major decisions. But talk of lower tax rates and cuts are on the horizon, which could reignite demand and put upward pressure on home prices.
While some buyers remain cautious, drawing comparisons to the initial COVID shock, NYC is showing resilience. Commercial leasing is surging, streets are buzzing again, and inventory is up slightly — giving buyers more options and room to negotiate. As with past cycles, when the dust settles, demand could roar back.
April Market Update – What the Data Shows: Even with all the uncertainty around tariffs and the economy, Manhattan real estate held up well in April. Buyers signed over 1,000 contracts — which is actually a notch above average for this time of year. So, demand is still there.
That said, the market has cooled a bit since March. Sellers don’t have as much leverage as they did, and the balance is shifting slightly toward buyers. Inventory is ticking up, and while we’re not seeing huge discounts, some sellers may be more open to negotiating — especially if their home has been sitting on the market for a while.
If you're selling, it's important to stay realistic and flexible on pricing. And if you’re buying, now’s a good time to keep an eye out for motivated sellers.
Luxury Market Sees Strong Activity: Manhattan’s luxury market had another active week, from April 28 to May 4, buyers signed 33 contracts for homes asking $4 million or more — up from 28 contracts the previous week, according to Olshan Realty’s latest report.
Meanwhile, Brooklyn’s luxury market remained resilient despite broader economic uncertainty. Between April 21 and April 27, 28 contracts were signed — 13 condos and 15 houses — on homes priced at $2 million or more, totaling over $92 million in volume. This marks the second consecutive week Brooklyn’s luxury contracts surpassed $90 million, a notable increase from the same time last year, when 21 contracts totaled just over $51 million.
Rental Market: We’re seeing all time high rent prices across all size segments of the Manhattan market, with studios leading the way at a 12% increase in listing price year over year. Brooklyn has seen growth in all size segments of the market as well, with a 2% increase in listing price for studios, one beds and two bedrooms. The only segment to take a hit in Brooklyn is the luxury rental market (over $6k), where prices are down 9% year over year.
Emission Regulations Arrive: May 1 marked a major deadline for NYC property owners, kicking off compliance requirements for a growing list of environmental laws — most notably Local Law 97, which caps carbon emissions for larger buildings. While the city offers grace periods (up to 90 days), many building owners remain unprepared.
More NYC Climate Rules to Watch
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LL84 & LL133: Buildings over 25,000 sq. ft. must report annual energy and water use.
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LL87: Every 10 years, buildings over 50,000 sq. ft. need an energy audit and system tune-up — due by Dec. 31 if it's your building’s year.
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LL95: Efficiency grades (A–F) based on benchmarking must be posted each October.
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LL157: Gas detectors are now required within 10 feet of gas appliances.
Compass Private Listings During a Turbulent Market: The best way to protect your asset during a potential market shift — and achieve the best outcome — is through Compass Private Exclusives and Compass Coming Soons.
These tools help shield your listing from public price drop history and accumulating days on market. In a shifting market, this can make all the difference.
If we move into a buyer’s market, sellers with public price reductions or extended time on the market may appear as “damaged goods” — even if the home is perfectly fine. Buyers tend to ask one of two questions: “How much do I need to pay to get this home?” or “How much can I get off the list price?” Public price drops and long days on market often lead to the latter.
In April, 35% of homes had a price reduction — the highest percentage for any April in the past decade. With ongoing economic turbulence, that number may continue to rise.
Compass Private Exclusives and Coming Soons let you test pricing without exposing your listing to price history or days on market — a smart strategy in uncertain times.
Here’s a video we put together on the strategy.
As always, please reach out with any questions.
