March 2025

March Newsletter —

The flowers are blooming and optimistic New Yorkers are ready to take off their winter coats. 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

As anticipated, the Federal Reserve has decided to hold interest rates as they are at their recent March meeting. However, the strategy behind their caution is now more complicated than simply waiting for inflation rates to drop below the Fed's stated 2% goal. There are two reasons the Fed lowers interest rates: high inflation or a faltering economy. As tariffs and trade wars are creating new levels of unpredictability, economists' optimism for several cuts over the course of 2025 has now cooled considerably to the potential for one to two small cuts toward the end of the year. Mortgage rates, meanwhile, have been hovering just at or above 6.5% for a few weeks.

In Manhattan, as inventory increases in February stayed relatively small (2.4% month-over-month and 2.5% year-over-year), increases in sales prices have been a little more dramatic. The average sales price in February 2025 rose 22.4% month-over-month and an astounding 47.8% year-over-year. Average price per square foot increased 4.6% month-over-month and 15.2% year-over-year. Median sale prices, which tend to be less influenced by luxury outliers, went up 9.5% month-over-month but 30% year-over-year — a difference of $300,000. This isn't an out-and-out sellers' market yet, though. Sales prices were going up, but so were average days on the market, which increased 16.6% month-over-month and 12.7% year-over-year. Similarly, even though contracts signed in February increased month-over-month by 14.5%, they dropped year-over-year by 11.8%.

Brooklyn's changes are somewhat moderate in comparison. The average sales price in February 2025 increased 4% month-over-month and 15.8% year-over-year, with increases in the average price per square foot of 5.9% month-over-month and 8.4% year-over-year. The median sales price trended closer to the average sales price in Brooklyn than it did in Manhattan, with increases of 1.9% month-over-month and 20% year-over-year. Inventory in February rose only 0.5% month-over-month and went down by 5.5% year-over-year, which was reflected by contracts signed (up 27.7% month-over-month, down 5.1% year-over-year). Brookln contains some of the most competitive neighborhood markets in the city, making it no surprise that the properties are averaging less than 130 days on the market.

We can expect an increase in new listings and an increase in active buyers across the city as things start to heat up both literally and figuratively for Spring.

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

+9.5%

Month-Over-Month

+30%

Year-Over-Year

+14.5%

Month-Over-Month

-11.8%

Year-Over-Year

Average Days on Market

+16.6%

Month-Over-Month

+12.7%

Year-Over-Year

Inventory

+2.4%

Month-Over-Month

+2.5%

Year-Over-Year

Source: Compass February 2025 Manhattan Market Report

+1.9%

Month-Over-Month

+20%

Year-Over-Year

Contracts Signed

+27.7%

Month-Over-Month

-5.1%

Year-Over-Year

Average Days on Market

+10.3%

Month-Over-Month

-12.3%

Year-Over-Year

Inventory

+0.5%

Month-Over-Month

-5.5%

Year-Over-Year

Source: Compass January 2025 Brooklyn Market Report

Rental Market Update

New York City's rental market is setting records even in the typically slow winter months.

In February 2025, Manhattan's median rent for new leases increased year-over-year for the fifth month, this time by 6.4% to $4,500. The average rental price for new leases was even higher, coming in at almost $5,400, with a new high average price per square foot of $90.65. One in four of those new leases included a bidding war, and February was the 11th month in a row that the number of new signings increased. The vacancy rate is slowly dropping, and the most active rental seasons have yet to begun.

In Brooklyn, rent per square foot increased almost 7% year-over-year to a record $59.15 — that's 20.7% higher than it was five years ago, just before the pandemic officially hit. The average rental price inched to more than $4,000, and the median rent increased to $3,600, with bidding wars now occuring in one in three new leases.

With the rental market already racking up records so early in the year, it's likely that we'll continue to see fierce competition throughout 2025.

Read the Compass February 2025 Rental Report here.

In the News

• Congestion pricing continues to be a top story, with President Trump trying to use federal funding for Penn Station and his administration's orders to stop charging the congestion pricing tolls to revive plans for a natural gas pipeline. The pipeline was killed five years ago when federal courts sided with environmentalists and then-Governor Cuomo's office over denial of an essential permit. Gothamist has the details.

  
  

• What do you need to know about next month's implementation of new license plate rules? This article from PIX11 lays out what will and won't be allowed for vehicles in NYC come April 16th, and what happens if you break the rules.

  
  

• A lot is being said about the COVID-19 pandemic now that we're five years out from the original lockdown orders. Many things about our lives have changed forever, especially in New York City, but it seems that population density won't be one of them. This article from SecretNYC reports on the city's population finally returning to its pre-pandemic levels.

City Spotlight: Breaking the Mold

2025 is the 200th anniversary of the Brooklyn Museum, and as part of its year-long celebration, the beloved institution has a brand new exhibit. Breaking the Mold: Brooklyn Museum at 200 consists of three chapters designed to showcase the art, architecture, and culture that has made Brooklyn what it is today. Brooklyn Made is a look at art and design created in the borough from the 17th century to today. Building the Brooklyn Museum and Its Collection traces the history of the museum, its development, and its collection, as well as the Beaux-Arts building that houses it. Gifts of Art in Honor of the 200th is all about contemporary works donated to the museum in honor of its bicentennial.

Breaking the Mold runs from February 28, 2025 to February 22, 2026, so you have plenty of time to check out everything it has to offer.

Click here for more information.

Just Closed

Upper East Side

360 East 88th Street, Unit 20D

2 BD 3 BA 1,338 SF $9,200

Rented above ask!

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.

Lenox Hill

220 East 72nd Street, Unit 21B1

2 BD 3 BA $9,795

With windows facing North and South, this apartment is just one of a handful of graciously sized, dual exposure 2-bedroom homes at 220 East 72nd Street! Equipped with top-of-the-line stainless steel appliances, as well as white quartz countertops, the kitchen is an elegant space to cook and entertain.

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

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 3/24/2025. 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 niche small business bookshops to next-level tutoring services, it's as simple as sending me an email.

Licensed Associate Real Estate Broker

M: 917.952.0414

rebecca.orbach@compass.com