August 2025

August Newsletter —

As August winds down and New Yorkers savor the last weeks of summer, the city’s real estate market continues to move at a steady pace. In this month's newsletter, we delve into the July market report, discuss the latest real estate news, and more.

Sales Market Update

The New York City sales market remained steady in July, with prices continuing to rise compared to last year and activity holding firm despite limited new supply. Buyers stayed engaged when homes were priced appropriately, while many potential sellers continued to wait on the sidelines, keeping overall inventory constrained.

In Manhattan, the median sale price rose 5.3% year-over-year to $1,342,750, while the average sale price declined 4.8% year-over-year to $2,165,58​9. Price per square foot increased 4.9% year-over-year to $1,576, reflecting steady demand for higher-quality products. Contract activity improved 5.1% year-over-year to 810 signed deals​ but fell 5.3% month-over-month from June, reflecting a slower midsummer pace. Condos were the bright spot, with contracts up 14.4% year-over-year, while co-ops saw a 4.0% year-over-year decline. Inventory in Manhattan totaled 6,668 listings, up 2.8% year-over-year but down 3.0% month-over-mont​h.

Brooklyn posted stronger pricing momentum. The median sale price rose 8.6% year-over-year to $1,195,000, while the average sale price climbed 10.9% year-over-year to $1,572,2​20. Median and average sale prices were up significantly month-over-month as well. Price per square foot increased 13.7% year-over-year to $1,044, and days on market fell 9.0% year-over-year to 121, signaling improved absorption. Contract activity, however, slowed: 468 deals were signed in July, down 9.7% year-over-year and 7.9% month-over-month. Inventory was nearly flat, rising 1.6% year-over-year to 3,378 listings and easing 1.1% month-over-month. Segment performance varied, with houses leading the way as median prices rose 16.8% year-over-year. Co-ops also posted significant gains, with median prices up 16.7%, while condos recorded a more modest 3.3% year-over-year increase.

Looking ahead, limited supply continues to provide a floor for prices, and with the Federal Reserve’s September meeting approaching, any adjustment in interest rate policy could further shape buyer sentiment heading into the fall. Activity is also expected to increase in September, following the seasonal trend of stronger buyer and seller engagement after Labor Day.

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

+9.9%

Month-Over-Month

+5.3%

Year-Over-Year

-5.3%

Month-Over-Month

+5.1%

Year-Over-Year

Days on Market

+4.9%

Month-Over-Month

+2.1%

Year-Over-Year

Inventory

-3.0%

Month-Over-Month

+2.8%

Year-Over-Year

Source: Compass July 2025 Manhattan Market Report

+11.7%

Month-Over-Month

+8.6%

Year-Over-Year

Contracts Signed

-7.9%

Month-Over-Month

-9.7%

Year-Over-Year

Days on Market

-10.4%

Month-Over-Month

-9.0%

Year-Over-Year

Inventory

-1.1%

Month-Over-Month

+1.6%

Year-Over-Year

Source: Compass July 2025 Brooklyn Market Report

Rental Market Update

Citywide rental inventory ticked higher in July, rising 4.9% from June​. Even with that monthly jump, inventory was still down 7.7% compared to last year. Compared to 2022, when renters faced peak scarcity, this summer’s inventory was 19.1% higher.

Manhattan continued to lead rent growth. Median asking rent climbed to $4,745 in July, up 8.5% year-over-year, marking the 11th straight month of annual rent gains. Inventory in the borough dropped 11.2% from a year earlier​, its 16th consecutive annual decline​, driving tighter competition and pushing prices higher. Citywide, the median asking rent rose 6.9% from last year to $4,064.

Brooklyn rents also increased, with the median asking rent up 6.1% year-over-year to $3,800. Inventory declined a more modest 3.0%, but concessions rose sharply, with 16.6% of rentals offering at least one month free, compared to just 10.6% last year.

Queens remained relatively more affordable, though median asking rent there also climbed 7.1% to $3,375. Inventory fell 6.6% from last July, while nearly one in five listings offered concessions, up ​5​%​ year-over-year.

Read the Compass July 2025 Rental Report here.

In the News

• A new UrbanDigs analysis reported by Forbes finds Manhattan and Brooklyn real estate increasingly split by price. Luxury properties ($4M+ in Manhattan and $2M+ in Brooklyn) are thriving, buoyed by cash buyers and resilient demand, while non-luxury segments face slower contract activity, rising inventory, and more frequent price cuts. Luxury resale condos are even appreciating, up 3% year-over-year in Manhattan and 9% in Brooklyn, while lower-priced homes struggle to hold ground.

• Major brokerages including Barclays, BNP Paribas, and Deutsche Bank now expect a 25-basis-point rate cut in September, after Chair Jerome Powell’s Jackson Hole remarks signaled greater concern over labor market risks. According to the CME FedWatch Tool, His comments marked a shift in the Fed’s reaction function, raising the bar for cutting rates. Markets are now pricing in an 87% chance of a September cut at the Sept. 16–17 FOMC meeting, up from 75% before his speech.

• Former GSE risk chief Clifford Rossi argues that Fannie Mae and Freddie Mac are now virtually indistinguishable, apart from pricing, and warns that maintaining them as separate entities risks repeating pre-crisis mistakes. He notes that the two share the same business model, infrastructure, and oversight, making a merger increasingly logical. Rossi has long been an advocate for consolidation, and the idea is drawing renewed attention as policymakers and industry experts debate the future of the mortgage giants still in federal conservatorship.

• The Manhattan office market is heating up. Borrowing tied exclusively to New York offices in the commercial mortgage-backed securities (CMBS) market has surged to $11 billion this year, with office financings in U.S. securitized markets at their highest level since 2021. Midtown availability has dropped from 18.2% to 15.5% year-over-year, while average weekday subway ridership, now nearing 4 million paid rides, has climbed to 72% of pre-pandemic levels, according to the Financial Times.

City Spotlight: "Dining in Transit" at The New York Historical

Travel back to a time when dining on the go was as memorable as the journey itself. Dining in Transit, now on view at the New-York Historical Society, explores the golden age of meals aboard trains, airplanes, and ocean liners in the first half of the 20th century. From French chefs crafting multi-course dinners to airline menus adorned with Valentine’s hearts in 1942, the exhibit captures both the glamour and the deeper cultural stories behind travel dining.

Highlights include souvenir menus, promotional recipe books, collectible tableware, and even a stewardess hat. The show also delves into the untold histories of the people who made these experiences possible, from Pullman porters to early airline stewardesses. To make the visit even sweeter, the museum’s new restaurant, Clara, is offering a special dessert menu inspired by the exhibition, with dishes like a fresh strawberry Bavarois, once served on the SS Normandie in 1938.

Dining in Transit is on view through October 19, 2025. Click here for more information.

Just Listed

Upper East Side

305 East 88th Street, Unit 5G

1 BD 1 BA 700 SF $599,000

Located on a peaceful tree-lined block, this thoughtfully renovated home offers windows in every room, blending prewar charm with modern comfort. Original details like herringbone hardwood floors, high ceilings, moldings, and a cedar closet add warmth and character throughout.

Greenwich Village

79 West 12th Street, Unit 7E

1 BD 1 BA 800 SF $6,850

This large one-bedroom is ideally situated on a picturesque tree-lined block and offers iconic West Village views, abundant closet space, and an open kitchen perfect for entertaining.

In Contract

Midtown East

235 East 55th Street, Unit 44B

1 BD 1.5 BA 882 SF $1,295,000

This one-bedroom, one-and-a-half-bath home pairs a meticulous renovation with breathtaking skyline views in three directions, showcasing the Empire State and Chrysler Buildings, the Queensboro and Manhattan Bridges, and a panorama of midtown’s most striking towers.

Upper East Side

131 East 81st Street, Unit PH15

2 BD 1.5 BA 1,075 SF $1,495,000

Welcome to PH15, a private full-floor corner penthouse in the heart of the Upper East Side. This light-filled home offers two balconies, private elevator entry, in-unit washer/dryer, a custom LEICHT kitchen, 1.5 baths, and skylights throughout, including one in the en-suite bath with heated floors.

Upper west Side

7 West 92nd Street, Unit 76

2 BD 1 BA $900,000

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.

Coming Soon

Upper east Side

Convertible Three-Bedroom with

East River Views

At nearly 1,800 square feet, this split-layout two-bedroom home showcases direct East River views from the expansive living room, both bedrooms, and the sunroom. Highlights include a south-facing formal dining room that can easily be converted into a large third bedroom, nine closets (including two oversized walk-ins), and new floors throughout.

nomad

Fully Renovated

Two-Bedroom

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.

Just Closed

Upper west Side

100 West 93rd Street, Unit 5K

1 BD 1 BA 753 SF $5,300

This large, south-facing one-bedroom home features an in-unit washer/dryer, a separate dining area, hardwood floors throughout, abundant closet space, and a premier location just steps from Central Park and right above Trader Joe's.

Most Recent Mortgage Rates

Rates are from Citibank and are effective as of 8/25/2025. 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 the best end-of-summer rooftop bars to where to find the first cider donuts of the season, it's as simple as sending me an email.

Licensed Associate Real Estate Broker

M: 917.952.0414

rebecca.orbach@compass.com