The last stretch of 2025 has arrived, and New York continues to show why it’s unlike any other city. Through rising rates, political drama, and economic curveballs, the market has not only held steady—it’s produced some of the year’s most exciting moments.
Buyers are still out in force, especially at the very top of the market. Record-setting contracts and ultra-competitive bidding have become the story in neighborhoods where supply is slim and demand is deep-pocketed. Sellers who price realistically are finding eager audiences, while trophy properties continue to capture headlines with jaw-dropping numbers.
The fall market started later than usual, but it came on strong. After Labor Day, momentum returned, and the city’s energy shifted back into deal-making mode. Looking ahead, New Yorkers are already buzzing about the mayoral race—big promises are being made, but as history shows, the city has a way of humbling even the boldest agendas.
Through it all, one truth remains constant: New York is resilient. The market bends, it shifts, it surprises, but it always finds a way forward. This city has never been for the faint of heart, and that’s exactly why it continues to attract people who thrive on its energy and possibilities.
Q3 Recap: Manhattan’s residential market is showing signs of renewed energy. In the third quarter, more condos and co-ops closed compared to the same time last year, according to Miller Samuel. The shift comes as the Federal Reserve is expected to announce two more interest rate cuts before year-end, a move that could keep borrowing costs at their current lower levels or push them down even further.
While rate cuts don’t guarantee immediate relief in mortgage rates, they often create conditions that make it easier for buyers to access financing. A decline in borrowing costs would also have ripple effects across the city’s rental market, which has hit record highs in five of the past eight months. Even a modest dip in rates could ease pressure on tenants and bring more balance to the market.
Looking ahead, the biggest impact is likely to be felt in the fourth quarter, particularly at the lower end of the market where buyers have been waiting on the sidelines for better affordability. Analysts point to significant pent-up demand, suggesting that if rates do fall further, New York could see a particularly strong finish to 2025.
Luxury Market: Last week, 29 contracts at $4M and above were signed in Manhattan—six more than the previous week. Condos continued to dominate with 21 deals compared to five co-ops, plus three townhouses in the mix. The two highest sales were in buildings designed by Pritzker Prize-winning architects.
The Upper East Side led the market for the second time in three months, edging out Downtown with 13 contracts to 10. New development was also a major driver, with 14 sponsor contracts signed—the largest weekly total since March.
Compass is Growing: Compass is joining forces with Anywhere Real Estate (Corcoran, Sotheby’s International Realty, Better Homes and Gardens Real Estate, CENTURY 21, Coldwell Banker, Coldwell Banker Commercial, and ERA) in a merger that will create the largest and most connected residential real estate networks in the world. What does this mean for you? Even more reach, resources, and technology designed to make buying or selling your home smoother and more seamless.
The combined company will connect over 340,000 real estate professionals across every major U.S. city and more than 120 countries. The move will allow other companies to leverage Compass technologies while allowing Compass to take 20-25% of the market share. For clients, this expands our three phase marketing approach, giving access to listing your home and price discovery across multiple firms.
Simply put, this merger allows Compass to bring more expertise, efficiency, and opportunity to the table—helping you achieve your real estate goals with greater ease and confidence.
Interested in learning about renting with the option to buy? Check out our Instagram video on best practices here.
As always, please reach out with any questions.
