As we come to the close of 2025, the New York City real estate market is ending the year strong, and finally feeling like itself again. After a long stretch of recalibration, buyers and sellers alike are acting with greater clarity, and the data reflects it.
Here are four takeaways from how the year ended and why they matter heading into 2026.
Buyers stepped back in, but only for the right opportunities
Contract activity strengthened into year end, with Manhattan recording 242 contracts signed in early December, one of the strongest weeks of the fall season. Demand rose nearly 6% week over week, driven not by urgency, but by alignment. When pricing, condition, and location made sense, buyers moved decisively.
Inventory tightened, raising the bar for both sides of the market
Active inventory declined to roughly 5,500 listings by mid December, with new listings slowing sharply. If this trend holds, supply could dip below 5,000 early in the new year. For buyers, this means preparation matters more than ever. For sellers, it means the window is strongest for homes that are priced and positioned correctly.
Pricing discipline mattered more than ambition
With contract volume up more than 13% year over year, homes that were priced realistically and presented thoughtfully continued to trade. Move in ready properties consistently outperformed, as buyers looked to avoid renovation costs, delays, and uncertainty.
Rates helped sentiment, but fundamentals drove decisions
Mortgage rates eased into December, with jumbo rates settling in the mid 6% range. While that supported confidence, behavior at the upper end remained driven by long term value, quality, and ownership considerations. Equity driven buyers remained active throughout the year, particularly in the luxury segment, where cash transactions continued to define the market.
Looking ahead, the data points to a market entering 2026 with tighter inventory, improving demand, and a more stable foundation than we have seen in recent years. For both buyers and sellers, the opportunity will be in timing, preparation, and strategy.
