Navigating the New York real estate market can feel like an exciting but complex challenge, especially with its unique trends that often defy national patterns. For agents and aspiring professionals, staying ahead of the curve is not just an advantage. It’s essential for building a thriving career.
This guide will walk you through the key dynamics of the 2025 market, from current price trends and inventory levels to regional variations and future forecasts, so you can confidently guide your clients to success.
Key Takeaways
- NYC Is Outpacing the Nation: While national home sales show a slight decrease, New York City is experiencing a 5.8% increase in new contract signings, marking nine straight months of growth.
- Inventory Is Growing, But Demand Remains Strong: Housing supply is up across the state, yet desirable properties are still selling quickly and often above the asking price, indicating a competitive market.
- Rental Market Is Highly Competitive: The NYC rental market continues to see high demand, with Manhattan’s median rent hitting a record $4,800 and available inventory shrinking.
- Hyperlocal Knowledge Is Crucial: Significant variations in sales and prices exist across different counties and boroughs, making localized expertise a critical asset for real estate agents.
Understanding the New York Market Landscape
The New York real estate market is demonstrating remarkable resilience in 2025, with New York City in particular bucking national trends.
While U.S. home sales dipped by 0.7% year-over-year, NYC saw a 5.8% increase in new contract signings as of May 2025. This marks the ninth consecutive month of growth, signaling strong buyer confidence in the area.
Current market trends and prices
Price indicators reveal New York’s premium market position compared to the rest of the country. The national median home price sits at $422,800, while New York City’s median asking price is more than double that, underscoring the value and demand within the five boroughs.
Here’s a breakdown of key prices:
- NYC Median Asking Price: $1.1 million (+2.3% year-over-year)
- Manhattan Median Asking Price: $1,495,000
- Brooklyn Median Asking Price: $1,100,000 (+3.9% year-over-year)
- Queens Median Asking Price: $695,000 (+10.6% year-over-year)
Experts predict a slight moderation in growth rates for late 2025 and early 2026, though the average home value in the New York-Newark-Jersey City area is currently strong at $705,108, up 4.5% over the past year.
Navigating Home Searches and Listings
For buyers, there’s good news on the inventory front. According to the New York State Association of REALTORS® (NYSAR), available homes grew by 3.6% statewide in May 2025 compared to last year. The increase was even more significant in New York City, providing more options for prospective homeowners.
How the housing supply has increased
- NYC: 17,940 homes for sale (+11.2% year-over-year)
- Manhattan: 9,581 homes for sale (+9.4% year-over-year)
- Brooklyn: 4,402 homes for sale (+13.6% year-over-year)
- Queens: 2,996 homes for sale (+14.9% year-over-year)
Despite this growth, the market hasn’t fully shifted to favor buyers. The most desirable properties are still selling at or above the asking price, reflecting continued competition. Additionally, stabilizing mortgage rates, which are forecasted to land between 6.0% and 6.5% by the end of 2025, are encouraging more buyers to enter the market.
Exploring Neighborhood and Metro Area Comparisons
The New York real estate market is not a monolith. Trends vary dramatically from one region to another, highlighting the importance of hyperlocal expertise for real estate professionals. Some counties are experiencing significant drops in sales, while others are seeing surprising growth.
The most recent New York State Association of REALTORS® (NYSAR) housing report (released August 21, 2025) indicates that median home sales prices reached a record high of $451,000 last month, as noted on their website. However, this statewide figure masks significant variations at the county level.
Some counties have experienced notable changes in closed sales. For example, according to a report cited by Rochester First, Monroe County saw a 2.7% decrease in sales, while Ontario County experienced a larger decline of 17.6%. In contrast, Wayne County saw a modest increase in closed sales of 1.2%.
These regional variations highlight the importance of hyperlocal market knowledge for agents working across different regions of New York.
A Look at the New York Rental Market
The New York City rental market remains incredibly robust in 2025. The citywide median asking rent reached $3,900 in May, a 2.7% increase from the previous year. However, the landscape differs significantly depending on the borough.
Evaluating the rental landscape
- Manhattan: The median rent hit a record high of $4,800 in May 2025. With available inventory down 19% annually, renters face a highly competitive environment.
- Brooklyn: The median rent was $4,085 in May 2025. Unlike Manhattan, available inventory increased by 3% year-over-year, offering renters more choices.
The fastest-growing rental markets by inventory include Gowanus in Brooklyn (+226%), Flushing in Queens (+50%), and Morningside Heights in Manhattan (+46%). Additionally, the recently enacted FARE Act is reshaping the market by requiring landlords to compensate rental brokers, which improves fee transparency for tenants.
Examining Supply and Demand Dynamics in NY Real Estate
Despite the increase in housing inventory, strong demand is keeping the market competitive. The average days on market for a property decreased to 50 days in May 2025, down from 54 days the previous year. On average, sellers received 102.8% of their asking price, indicating that well-priced, quality properties are still moving quickly.
Balancing act: supply vs. demand
Several key factors are influencing this dynamic:
- Pent-up demand from buyers who previously delayed their purchases.
- Stabilizing mortgage rates are bringing more buyers into the market.
- Increasing inventory is providing more options, but not enough to cool competition entirely.
- Strategic pricing has become crucial for sellers to attract the right buyers.
Predicting the Market’s Future Outlook
Looking ahead to the remainder of 2025 and into 2026, experts anticipate a market that is moving toward a healthier balance. Both home sales and inventory are expected to continue their upward trends, while price growth will likely become more measured and predictable.
Predictions for the next year
- Home Sales: The National Association of Realtors (NAR) projects that existing home sales will increase by 11% in 2026.
- Price Growth: Expect more moderate gains as supply and demand find a better equilibrium.
- Inventory: The number of available homes is expected to keep growing, particularly in Brooklyn and Queens.
- Mortgage Rates: Rates are predicted to stabilize between 6.0% and 6.5% by the end of 2025.
For real estate professionals, success in this environment will depend on developing deep hyperlocal expertise, mastering strategic pricing, and leveraging technology to connect with buyers and sellers.
Is it worth it? Take a look at our research on how much real estate agents make in NY.
Your Real Estate Journey Starts Here
The New York real estate market offers a rewarding career path for those ready to embrace its dynamic nature. Whether you’re helping a first-time buyer find their dream home in Brooklyn or guiding a seller through a competitive Manhattan market, the opportunities for success are boundless. For those looking to enter the field, now is an excellent time to build a strong foundation with quality education.
Colibri Real Estate offers comprehensive, state-approved NY pre-licensing courses designed to fit your lifestyle and set you on the path to success. With flexible online options and a “Pass or Don’t Pay” guarantee, you can feel confident in your investment.
The entire process typically takes 2-3 months. With expert instructor support and comprehensive exam preparation from Colibri Real Estate, you’ll be well-equipped to launch your new career.
