- Manhattan saw 38% more deal activity in December, with new listings rising by 42%.
- Brooklyn’s residential market saw a notable jump in new listings, doubling from last year.
- Manhattan luxury homes saw strong demand, especially those priced over $4M, despite overall inventory tightening.
New York City’s residential real estate market ended 2024 on a high note, with 38% more deal activity than last year.
December saw Manhattan signings and new listings surge, while Brooklyn inventory keeps going up, according to The Real Deal.
By The Numbers
New signed contracts in Manhattan rose from 524 to 723 YoY in December, continuing a trend that began in late summer and early fall. This defied predictions that the market would slow down before the presidential election.
New listings also rose sharply in the Big Apple, up 42% YoY from 415 to 589 homes hitting the market. The luxury segment, defined as homes listed at $4M or more, significantly outperformed the broader market.
Sales in this category nearly doubled compared to 2024. Despite some volatility in the financial markets, Miller attributes the strength of this market to consistent gains in equities and a relative lack of new listings in the high-end sector, helping to maintain price levels.
Where Brooklyn At?
While Brooklyn’s contract activity held steady, new listings in the borough soared. In December, over 570 homes hit the market, nearly double the 292 new listings recorded in December 2023.
This increase in inventory is seen as a sign that more homeowners are looking to sell, possibly driven by changes in buyer sentiment and expectations regarding falling mortgage rates.
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Why It Matters
Despite the Federal Reserve’s tightening of monetary policy, which pushed mortgage rates to around 7%, NYC buyers and sellers appear to be adjusting to the new normal.
As Miller notes, “life keeps moving on,” and buyers are no longer waiting for a significant dip in mortgage rates, which are expected to remain somewhat stable in the near future.
Looking ahead
As the market keeps stabilizing, both buyers and sellers seem to be adapting to the changing economic landscape. The growing inventory in Brooklyn and the strength of Manhattan’s luxury sector reflect a more balanced market, where demand and supply are starting to align.
With mortgage rates expected to remain steady or fall slightly, NYC’s residential market looks poised for another strong year in 2025.al branded residential projects expected to be in hospitality, the region is set to remain a leader in this burgeoning market.
