What Can Sellers Expect From the Market for the Remainder of 2025?

The Weekly Recap

Good morning and happy Friday! A ton of office conversions are underway to create more housing in NYC, Manhattan rental prices are easing, the most recent Fed minutes show that we could see two more rate cuts this year, bitcoin and gold are both at record highs, investors are the leading segment of homebuyers purchasing more homes than anytime in the last five years. The mayors race is getting tighter, we might have peace in the Middle East and if you see weird stuff going on over on 10th Ave this weekend its just NYC Comic Con taking place at the Javits Center.

If you missed last weeks newsletter on Is The Buyers Strike Finally Paying Off?, you can read that through the link.

What Can Sellers Expect From the Market for the Remainder of 2025?

The remainder of 2025 is shaping up to be a more balanced, yet more challenging market for New York City home sellers. After several years of rapid appreciation, bidding wars, and frenzied demand, conditions have cooled. Inventory is now higher than it’s been in years, mortgage rates remain in the lower part of the mid-6% range, and buyers are moving cautiously but with intent. While the Federal Reserve is signaling rate cuts ahead, they’re expected to be gradual, meaning sellers should prepare for a measured pace of demand, not an overnight surge of activity.

For many sellers, the biggest shift will be in time on market and negotiation dynamics. Homes that might have sold in days a few years ago are now taking weeks or even months if they have aspirational pricing to find the right buyer. The days of “testing the market” with that aspirational price strategy are behind us where success’ in today’s market are defined by precision pricing and strong presentation.

That said, it’s not all headwinds. Certain segments of the market, particularly luxury and international buyer-driven sales, are showing resilience. Global capital is flowing back into New York, and the city’s status as a safe, stable investment market continues to attract wealth from abroad.

Sellers who succeed in environments such as this one are those who approach it pragmatically. That means pricing competitively, staging thoughtfully, and leveraging every available tool to create emotional connection through marketing. Offering buyer incentives like flexible closing terms, can also make your listing stand out without forcing a deep price cut. And if selling now would create undue financial strain, renting the property for a short period may be a smart way to bridge the market until conditions strengthen.

Ultimately, the NYC housing market of late 2025 is normalizing. The post-pandemic boom has given way to a healthier, more sustainable market where fundamentals like pricing strategy, presentation, and negotiation skill matter again. For sellers willing to adapt, this is an opportunity to stand out while others hesitate. In a city built on resilience and reinvention, there’s always demand for great homes.

If you’re thinking about selling, always feel free to reach out to see what your home may be worth and how we can work together!

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 decreased this week and over the last few weeks have settled in at their lowest levels of the year. Purchase activity continues to increase and with the recent revelation that several Fed governors are taking the position that there could be as many as two more rate cuts before the end of the year, should continue to drive that purchase sentiment.

News You Can Use

• A Wave of New Apartment Buildings Is Set To Take Over Midtown Bloomberg

• Conversion Mania Grips NYC Office Buildings NY Post

• Manhattan Rents Pull Away From Record High in Seasonal Shift Bloomberg

• Divided Fed Officials Saw Another Two Rate Cuts Before End of 2025 Minutes Show CNBC

• Investors Are Making Up the Highest Share of Homebuyers in Five Years CNBC

• Bitcoin Touches Record Price of $125,000 Yahoo Finance

• Gold Prices Hit $4000 an Ounce For the First Time Ever CNBC

• Trump Pitches $2,000 Stimulus from Tariff Revenue Axios

• America Is Minting Lots of Cash-Strapped Millionaires Bloomberg

• The Wealth of the Top 1% Hits a Record $52 Trillion CNBC

• First Comes Dimon’s New Tower. Next Is a JPMorgan Neighborhood Bloomberg

• NYC Comic Con Takes Over Javits Center NY Post

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!