Summer Market Update: 2025

The Burkhardt Group

Summer Update 2025

Navigating the Summer 2025 New York City Real Estate Landscape: A Market Update

As summer 2025 unfolds in New York City, the real estate market presents a nuanced picture, characterized by a general softening trend with specific pockets of activity. While statistical data offers a broad overview, our recent on-the-ground experiences and observations provide valuable context for understanding the current dynamics. Mirroring the data, the prevailing market conditions do not foster a strong sense of urgency for prospective home buyers across most segments. However, the exceptions are noteworthy!

Inventory levels have indeed seen an uptick over the past year. However, a closer examination reveals that the increase in quantity has not necessarily been matched by an equivalent rise in quality lisings. A significant factor contributing to this phenomenon is the reluctance of many homeowners to relinquish their properties, particularly those secured with low fixed-rate mortgages, frequently below the 3% and in some instances even hovering around 2%. This understandable hesitancy limits the supply of prime, well-maintained properties entering the market. Consequently, the buyer pool we are primarily engaging with consists of individuals and growing families who hold a firm belief in the long-term benefits of home ownership. These buyers are committed to making a purchase in the current environment, viewing it as a more prudent financial/emotional decision than continuing to rent. To be very frank, most of the available rental inventory is lacking in substance, with the exception of the ultra high end market.

The traditional late winter and spring selling season unfolded in a somewhat predictable pattern. However, recent weeks have witnessed a noticeable decline in overall market activity. It is important to note that this slowdown does not preclude the emergence of competitive situations when the right property becomes available. Our recent experience at 301 East 79th Street serves as a prime example. This well-appointed two-bedroom, two-bathroom apartment, situated in a desirable doorman building with attractive low monthly carrying costs, generated substantial buyer interest. Despite the quick acceptance of our client's offer, we encountered multiple competing bids, including several all-cash offers. Through diligent focus and meticulous execution of our strategy, we successfully navigated this competition and secured a contract with a wonderful family. This is a good example of acting decisively even when large segments of the market are struggling. When something good comes on the market, it's worth fighting for!

However, it is crucial to acknowledge that for every successful transaction like the one at 301 East 79th Street, a significant number of properties are experiencing prolonged periods on the market, frequently exceeding 100 days. My ongoing discussions with professionals across the real estate spectrum, including bankers, real estate attorneys, and other industry service providers, consistently point towards a general deceleration in market activity. I have also received an increasing number of calls from fellow real estate agents who are encountering similar challenges with their listings, often expressing surprise and concern over the lack of buyer engagement even after several weeks of the property being actively marketed.

Guidance for Buyers and Sellers in the Current Market:

For Buyers: The current market conditions present a potentially advantageous window to continue your property search. Patience and sustained engagement remain key. There is generally no compelling reason to feel rushed into making a decision unless you encounter a property that genuinely aligns with your specific needs, lifestyle, and financial parameters. Based on the current trajectory, I do not anticipate a significant improvement in overall market conditions in the short to midterm. Therefore, taking your time to find the right fit is a prudent approach.

For Sellers:

In the current environment, it is absolutely essential to establish realistic expectations regarding pricing and time on market. Unless your property possesses truly exceptional and highly sought-after qualities that set it apart from the competition, patience will be a crucial virtue. It is important to bear in mind that the average time a property is currently spending on the market is approximately 90 days. Effectively navigating this type of market with sellers constitutes one of the most demanding aspects of my role as there broker. However, our commitment remains steadfast in providing straightforward, data-driven advice and collaboratively developing a strategic plan to achieve a successful sale of your home. While a guaranteed "magic formula" does not exist, our established approach, built upon hard work and unwavering perseverance, has consistently yielded positive outcomes for the vast majority of our listings.

The Return of Seasonality:

After a decade in the New York City real estate market where traditional seasonality appeared to have diminished in its impact, we are now observing a return to a more predictable cyclical pattern. This year, the typical summer slowdown seems to have started earlier than usual, beginning around the start of June, and is expected to continue its deceleration as we progress further into the summer months. Historically, the residential sales market would largely enter a period of dormancy in August, preceded by a noticeable dip in activity during late June and throughout July. The end of the era of exceptionally low interest rates has undoubtedly played a significant role in the re-emergence of this traditional seasonal ebb and flow. The reality is, many current owners cannot afford a similar home as the one they own, at the current interest rates.

Strategic Considerations for 2025:

So, what constitutes the optimal course of action if you are considering buying or selling property in New York City during 2025? This is a nuanced inquiry that cannot be addressed with a singular, universally applicable answer, as the individual circumstances, priorities, vary considerably from one person to the next. However, my fundamental recommendation for those looking to buy is to prioritize quality properties situated in locations that demonstrate strong and consistent buyer demand. Investing in such areas can provide a greater degree of resilience against broader market fluctuations and equally important, liquidity. For sellers, the primary focus should be on setting an accurate and competitive price based on a thorough analysis of recent comparable sales, particularly within your specific building, especially for cooperative apartments (co-ops). Furthermore, meticulous preparation of your home prior to listing is a critical component that significantly contributes to achieving a successful outcome. I would welcome the opportunity to discuss these considerations with you in greater detail over the phone, as this topic warrants a more in-depth conversation, perhaps even meriting its own dedicated blog post!

I have included a link below to Urbandigs' "Macro Monday" podcast. I personally find this to be an invaluable resource for staying well-informed about the current state of the New York City real estate market and the relevant underlying economic data that exerts influence upon it. I've also included a link to a Wall Street journal article that details the current United States housing market.