Is the “Buyers Strike” Finally Paying Off?

The Weekly Recap

Good morning and happy Friday! Mayor Adams officially dropped his re-election campaign, the government shutdown again, Manhattan home sales hit a two year high, tolls and transit fares were increased by the MTA, IKEA is planning a $2 billion expansion within NYC, gold continues to boom, inflation remained flat and all cash deals for apartments continue to reign supreme.

If you missed last weeks newsletter on Is NYC a Buyers Market or a Sellers Market?, you can read that through the link.

Is the “Buyers Strike” Finally Paying Off?

Over the past three years, many would-be buyers stepped back from the housing market. High prices, rapid rate increases, and fierce competition made affordability a serious challenge. Now, that “buyers’ strike” is finally having an impact. Home prices are beginning to adjust, and affordability is slowly moving back toward more normal levels. But this shift is creating new stress points for sellers, builders, and even the broader economy.

Today, there are more completed new homes on the market than at any time in the past 16 years. In addition, active housing inventory has climbed above 2019 levels in 14 states. This marks a significant shift from the ultra-tight conditions of the pandemic-era market, where low inventory was the norm and sellers enjoyed overwhelming leverage.

As supply rises, pricing will continue to respond. The path back toward 2019-style affordability isn’t without challenges as how far prices fall will largely determine the pressure placed on the construction industry. For builders, thinner margins and slower sales can mean cutbacks in projects and jobs, creating ripple effects for the wider economy.

For buyers, however, this trend signals opportunity. More inventory means more choice, less competition, and the potential to secure a home at a more reasonable price. For sellers, it underscores the importance of realistic pricing and flexible strategies. The market is in the midst of a normalization process, and success will depend on how well both sides adapt to the changing landscape.

If you’ve been waiting on the sidelines, this is a moment to re-engage with the market as conditions shift in your favor. If you’re selling, working with the right advisor to price competitively will be critical to achieving the results you want.

Feel free to reach out to discuss your real estate goals and how we can work together to achieve them!

Market Performance

Here are how some other indexes and asset classes have performed as of this morning’s opening bell.

NYC Market Update

Here is a view of NYC market activity over the past week.

Mortgage Rate Update

The 30-year fixed-rate mortgage saw a slight increase again this week but remains well below its 52-week average of 6.71%. The recently reported increase in pending home sales shows that homebuyers are feeling more confident coming into the marketplace.

News You Can Use

• Manhattan Home Sales Jump to Two-Year High Led By Cash Buyers Bloomberg

• US New Home Sales Unexpectedly Jump 20% in Broad Advance Bloomberg

• Pending US Home Sales Jump to Highest Level in Five Months Bloomberg

• NYC Vacant Offices Converted to Homes At Highest Rate Since 2008 Financial Times

• NYC Transit System Raises Fares and Tolls As MetroCards Come to an End Bloomberg

• Core Inflation Rate Held at 2.9% As Predicted CNBC

• US Begins Government Shutdown As Trump and Democrats Are At An Impasse Bloomberg

• NYC Mayor Eric Adams Exists Race, Warns Against Votes for Chaos Bloomberg

• Video Game Giant EA Eyes Largest LBO in History Valued at $50B Wall Street Journal

• The EA Buyout Can Be the Start of the Trump 2.0 Deal Boom Bloomberg

• IKEA Plans Massive NYC Expansion Despite Tariffs Bloomberg

• US Gold Reserves Hit $1 Trillion In Value After Record Rally Bloomberg

The Deep Insight

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Feel free to reach out to discuss more in-depth about your real estate goals, share your thoughts about my newsletter, or to share what you're experiencing in this market. Looking forward to hearing from you!