Fall 2025 Update
Good afternoon! It's hard to believe this is my 18th Fall update! Time certainly flies when you're having fun. Despite the headwinds facing most of the U.S. real estate market, we are having a solid year in NYC. While we experienced a slowdown around summer, we are now seeing a significant increase in activity, with several deals in the works and an uptick in new client engagement. I'm also excited to announce that Norman Brannon has rejoined The Burkhardt Group as a partner, having invested in the company. He is now leading the development of our new website and a fresh marketing initiative. I've seen the initial designs for the new site, and it looks incredible! Previously, my focus was solely on building the company, with minimal attention paid to branding and marketing. However, it is now time to move forward with a modern brand identity that complements our exceptional, data-driven customer service experience. Stay tuned for more updates! And of course, thanks to everyone that has kindly referred their friends and colleagues to us. Together we have built a company that made the first significant change to the NYC real estate brokerage business model in 100 years! We continue to deliver exceptional, transparent and data driven service to our clients.
Sincerely,
Keith
Here is a brief snapshot into the markets: NYC Real Estate Market Update The New York City real estate market is currently experiencing a fascinating period of adjustment and resilience. After a robust post-pandemic surge, the market is now navigating a landscape shaped by higher interest rates, economic uncertainties, and evolving buyer preferences. Key Trends: Slowing Sales Velocity: While still active, the pace of sales has moderated compared to the frenzy of 2021 and early 2022. Buyers are taking more time to make decisions, and bidding wars are less common. Stabilizing Prices (with nuances): Overall median sales prices in Manhattan and Brooklyn have shown signs of stabilizing or even slight dips in certain segments, particularly for larger luxury properties. However, well-priced smaller units in desirable neighborhoods can still attract strong interest. Increased Inventory: More homes are coming onto the market, giving buyers more options and a bit more negotiating power. This contrasts with the tight inventory seen in previous years. Higher Interest Rates Impact: The Federal Reserve's rate hikes have significantly impacted affordability, especially for first-time buyers and those seeking jumbo mortgages. This has led some potential buyers to pause their search or adjust their budgets downwards.
Rental Market Strength: The rental market remains exceptionally strong across NYC, with high demand and rising rents. This is partly due to potential buyers holding off on purchases and increased population density. Luxury Market Resilience (but cautious): The ultra-luxury segment, while sensitive to economic shifts, has seen some high-profile transactions, indicating continued interest from affluent buyers. However, this segment is also feeling the impact of tighter credit conditions and global economic concerns.
What's happening in the rest of the country? The national real estate market is undergoing a significant correction after years of rapid appreciation. The primary drivers of this shift are elevated mortgage interest rates, persistent inflation, and a general cooling of buyer enthusiasm.
MANHATTAN RESIDENTIAL SALES DATA (YTD THROUGH Q3 2025) CLOSED SALES VOLUME AND TRANSACTIONS Total Closed Sales (YTD): Approximately 8,564+ transactions (calculated from Q1, Q2, and Q3 figures). Total Sales Volume (YTD): Approximately $17.6+ Billion (calculated from Q1, Q2, and Q3 figures). Q3 2025 Performance: This was the borough's strongest third quarter for closings in three years. Sales volume was up 11% year-over-year. PRICING TRENDS Median Sales Price (Q3 2025): $1,225,000 (reaching a post-pandemic high). Key Driver: Price appreciation was fueled by the active luxury segment, with sales over$3 million jumping 20% year-over-year. Cash Buyers: Cash transactions made up approximately 65% of all sales, insulating the high-end market from elevated mortgage rates.
BROOKLYN RESIDENTIAL SALES DATA (YTD THROUGH Q3 2025) Brooklyn saw a surge in price records in 2025, but overall transaction volume was constrained by limited inventory. CLOSED SALES VOLUME AND TRANSACTIONS Q3 2025 Closed Sales: 1,386 transactions. Q3 2025 Trend: Closed sales volume saw a modest decline of2% year-over-year, marking the fifth consecutive quarter of annual decline, due to persistently low inventory. Total Sales Volume (Q3 2025): $1.628 Billion. Volume increased 11% year-over-year because the sales that did occur were at higher price points. PRICING TRENDS Median Sales Price (Q3 2025): $925,000 (a record high for the borough). Key Driver: The record median price was driven by a shift in sales mix toward the highpriced new development sector, which saw its median price climb to$1,401,000 (up 38% year-over-year). Inventory: Listed inventory fell6% year-over-year in Q3, which is the main factor restricting the number of closed transactions.
COMMERCIAL/INVESTMENT SALES (1H 2025) Manhattan Investment Sales: Totaled $6.81 Billion in the first half of 2025, a 4% increase year-over-year. The top-performing asset class was Office. Brooklyn Investment Sales: Totaled approximately $2.6 Billion in the first half of 2025. The Multifamily sector was the strongest asset class, recording$730 million in sales.
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