February 2025

February Newsletter —

Midwinter is going strong, but in just a few more weeks, we'll be springing those clocks forward and gaining another hour of light. In this month's newsletter, we take a look at the state of the market, discuss the latest real estate trends, and more.

Sales Market Update

The New York City real estate market seems to have finally settled back into its predictable seasonality, which is good news for anyone thinking about buying or selling. While there is still some uncertainty at play, as global tensions, agricultural supply constraints, and mass layoffs and resignations are likely to affect both the economy and confidence in the economy, the NYC market has always been an entity unto itself.

January 2025 followed typically slow seasonal trends, exacerbated by the market uncertainty surrounding a transition of presidential power. Additionally, despite hopes that we would see lower rates by now, mortgage rates are hovering at around 7%, almost exactly where they were a year ago. That number will likely hold steady for most of the year, as the Fed announced at their January 29th meeting they would not be making additional cuts at this time. Many economists have predicted we may not see reductions until the May 7th meeting.

Changes in overall inventory levels were negligible across the board, which is expected for this time of year, but the amount of new listings increased 12.6% when compared to January 2024. Citywide, the median asking price declined 2.1% year-over-year to $1.075M, but the median sale-to-list ratio rose from 95.3% last January to 95.9% in January 2025.

In Manhattan, the average sale price decreased 2.9% month-over-month and increased 8.6% year-over-year. The average price per square foot followed a similar trend, with a small drop from December but an uptick from January 2024. New home contracts were down from December but do show a small increase year-over-year. None of this data suggests anything out of the ordinary, and we can expect a robust spring surge around March/April.

Brooklyn is a different story. While the average sale price increased slightly month-over-month, there was a surprising 20.5% increase year-over-year, and the median asking prices in a record 34 neighborhoods rose above $1M. It looks like the popular borough is set for yet another banner year. The rest of the data concurs—compared to January 2024, average price per square foot is up almost 11% and average days on the market are down more than 12%. The median asking prices topping $1M in 34 neighborhoods — the most on record.

Spring is the busiest time of year for new listings, which makes now the key time to get ahead of the game. These few weeks before the spring market are crucial for securing a broker, for readying your apartment to come to market, or for purchasing prep like getting your financial documents in order. An expert real estate agent who can advise you on strategy and timing will be essential to selling your property quickly or closing on your dream home.

Let's take a closer look at the statistics from Manhattan and Brooklyn.

-2.9%

Month-Over-Month

+8.6%

Year-Over-Year

-6.1%

Month-Over-Month

+1.0%

Year-Over-Year

Average Days on Market

-7.9%

Month-Over-Month

-1.1%

Year-Over-Year

Inventory

+1.3%

Month-Over-Month

-0.4%

Year-Over-Year

Source: Compass January 2025 Manhattan Market Report

+2.9%

Month-Over-Month

+20.5%

Year-Over-Year

Contracts Signed

-16.9%

Month-Over-Month

-16.3%

Year-Over-Year

Average Days on Market

-4.9%

Month-Over-Month

-12.7%

Year-Over-Year

Inventory

+2.8%

Month-Over-Month

-3.9%

Year-Over-Year

Source: Compass January 2025 Brooklyn Market Report

Rental Market Update

January 2025 was another month of rising rents and setting records.

Manhattan's newly signed leases increased for the 10th month in a row, and the borough's median rent rose year-over-year for the fourth time to $4,350. Bidding wars rose to 20.9%, a year-over-year increase of over 15%.

In Brooklyn, rent per square foot increased almost 6% year-over-year to a record $57.90, with slightly less than a third of all leases involving a bidding war. As rents continue to increase, Brooklynites are finding their average apartment sizes are decreasing. In January 2024, the average apartment size for a Brooklyn rental was 944 square feet. In January 2025, it was 922.

The cause for this flurry of high-stakes activity is the same as it has been for years now—a long-term housing crisis with a 1.4% vacancy rate, and high mortgage rates. Would-be sellers are sitting tight on locked-in lower mortgage rates and would-be buyers are unwilling or unable to take on a mortgage at a lingering rate of around 7%. Given that economists are predicting we won't see rate relief from the Federal Reserve until early May, it's going to be a while before renters see any changes in their favor.

Read the Compass January 2025 Rental Report here.

In the News

• Advocates of congestion pricing are generally pleased with the policy's initial results, according to this article from Gothamist. Data gathered by the city's Economic Development Corporation comparing January 2024 to January 2025 indicates 7% fewer cars entered the congestion zone with a 4.6% rise in pedestrian traffic. The intersection of Broadway and Prince Street especially saw a 20% increase in pedestrians year-over-year.

  
  

• Speaking of congestion pricing, President Trump has entered the executive branch into the complicated legal fray. You can read about the implications in this article from the New York Times, and I'll keep you updated as it develops.

  
  

• This article from Forbes lays out the main changes and opportunities presented by the "City of Yes" policy that aims to tackle NYC's 1.4% vacancy rate with an added 80,000 units over the next decade. Part of those reforms include easing or removing outdated zoning laws to allow existing properties to expand, create legal basement apartments, and explore mixed-use potential.

  
  

• Brick Underground reports on an additional $41 million headed to the city's HomeFirst program, which loans qualifying first-time homebuyers up to $100,000 in down payment assistance. Expanded eligibility requirements now allow for those applicants making up to 120% of the average median income.

City Spotlight: Mercer Labs

You've heard of MoMA, now get ready for MoAT, or the Museum of Art and Technology. Also known as Mercer Labs, this brand new addition to NYC's impressive menu of museums comes from the collabortion of artist Roy Nochum and prominent real estate figure Michael Cayre. Located in the Financial District, the museum consists of 15 exhibition spaces, interactive experiences, and immersive installations focused on exploring the relationship between art and technology. Tickets are available now.

Click here for more information.

Just Sold

Lenox Hill

400 East 70th Street #3003

2 BD 2 BA 1,150 SF $1,950,000

Perched on the 30th floor with breathtaking views from three different exposures, this expansive home has been fully renovated, and not a single detail has been overlooked. Enjoy 75 square feet of private outdoor space, an open chef’s kitchen with top-of-the-line appliances and a large island, and laundry just down the hall, all in a full-service condo.

Upper West Side

150 West End Avenue, Unit 21H

1 BD 1 BA 900 SF $810,000

This spacious home is bright and offers stunning views of the building's garden. Set in an ideallocation on West 66th Street, this home is proximate to tons of dining options, transportation, and cultural institions.

In Contract

Upper East Side

1165 5th Avenue, Unit 2/3D

4 BD 3 BA 2,200 SF $2,250,000

Rarely available and on the market for the first time in over 40 years, this unique, house-like apartment is filled with natural light thanks to direct southern and eastern exposures.

Lenox Hill

530 East 72nd Street, Unit 14E

2 BD 2 BA $1,437,500

Extraordinary skyline and river views await in this spacious two-bedroom, two-bathroom home featuring sun-kissed interiors, generous storage, private outdoor space and a peaceful location in a full-service Lenox Hill co-op.

Just Listed

305 East 40th Street, Unit 5K

2 BD 2 BA $1,149,000

Bright and airy with southern and eastern exposures, this fully renovated home features an in-unit washer/dryer, abundant closet space, and solid oak floors throughout. With a low maintenance fee and no flip tax, it offers both comfort and value.

Clinton Hill

110 Clifton Place, Unit 2A

1 BD 1 BA $950,000

At approximately 850 SF, this fully renovated prewar loft combines charm and modern convenience, featuring high-beamed ceilings, hardwood floors, and abundant natural light with treetop views from southern and northern exposures.

7 West 92nd Street, Unit 76

2 BD 1 BA $899,000

This top floor, fully renovated two-bedroom home is ideally located just steps from Central Park. With 9’ ceilings, an in-unit washer/dryer, three exposures with windows in every room, and charming details like exposed brick and a decorative fireplace, this home is not to be missed.

East Village

645 East 11th Street, Unit 1

Located in the East Village, this retail condo was formerly a dental office. There are three exam rooms and two street entrances.

Coming Soon

UPPER EAST SIDE

360 East 88th Street, Unit 20D

2 BD 2.5 BA 1,338 SF

This bright, corner home is newly renovated and offers unobstructed views from two different exposures, tons of closet space, a built-in home office, an in-unit washer/dryer, central AC, automatic blinds, two bedrooms (both of which can accommodate king-size beds), and 2.5 bathrooms. The apartment offers an open layout with hardwood floors throughout, recessed lighting, and south and east exposures with panoramic city and endless river views.

For more information, please contact me.

Upper east side

Pre-War One-Bedroom

This charming prewar one-bedroom is quiet, with windows in every room and access to a range of building amenities, including a common courtyard, laundry facilities, bike storage, and a children’s playroom. Situated on 88th Street and Second Avenue, this residence offers convenient access to the 4/5/6 and Q trains, as well as the 86th Street crosstown bus.

Contact me for details.

NoMad

88 Lexington Avenue

2 BD 2.5 BA 1,541 SF $12,500/month

This luxurious east-facing split two-bedroom, two-and-a-half-bathroom home features oversized windows with open views, ceilings over 10 feet high, an in-unit washer/dryer, a separate office area, and central AC, all a building with more than 10,000 square feet of amenities.

Contact me for details.

Off-Market

Rental Buildings in Prime Locations

Four rental buildings available off-market, offered individually or as a package. Located on the Upper East Side, Upper West Side, and Gramercy, these properties feature a mix of rent-stabilized and free-market units, with all buildings fully occupied. Each building contains between 6 and 17 units. For more information, please contact me.

Lower East Side

265 East Houston Street, Unit 7

2 BD 2 BA 1,400 SF $9,995

Available short term (three months minimum) or long term, furnished, unfurnished, or partially furnished.

Ideally located in the heart of the Lower East Side, this expansive seventh-floor loft-style home offers unparalleled luxury living. Boasting exclusive elevator access and a private balcony, this residence features an array of modern amenities, including an in-unit washer/dryer.

Most Recent Mortgage Rates

Rates are from Citibank and are effective as of 2/24/2025. Rates are subject to change without notice.

Everyone’s mortgage needs are different. I have great relationships with mortgage brokers and loan officers from big banks and small banks who can help find the best loan for you. If you're looking for a lender you can trust, I'd love to help. Email me for more.

Rebecca's Resources

I'm an expert at successfully repositioning and selling homes that were previously listed without success. Click here for examples of how I have transformed listings to showcase a property's full potential, securing favorable deals where other agents could not.

Find out how Compass Concierge can help you prepare your home before coming to market by fronting the costs of upgrading, renovating, and staging at no interest.

I'm born and raised in New York City. If you've got a question, I've got you covered. For recommendations on anything, from the quietest blocks in Manhattan to the best delivery ramen, it's as simple as sending me an email.

Licensed Associate Real Estate Broker

M: 917.952.0414

rebecca.orbach@compass.com