Will New York apartment prices go down? That’s a question both buyers and sellers are asking as we start the new year. Sellers are looking to get the best deal for their assets, while buyers are hoping to snatch a good apartment at a bargain price.
NYC Apartment Prices
Experts from multiple sources agree that co-op apartments might make a strong comeback in 2025. The market trends endorse this notion. Co-op median sales prices grew up through the first three quarters in Brooklyn and for at least two quarters in Manhattan. So, there is a strong probability that co-op apartments will go up instead of down.
Another factor to consider is the interest rates. It might not see a significant cut (as per the current projections), but there is also a limited probability that the Fed will raise the prices. So buyers may not shy away from the market, allowing apartment owners to keep asking prices the same or moderately high (at least co-op owners).
The number of new condo listings is also up compared to co-op listings. So, condo sellers might see more competition compared to co-op sellers, who also experience more buyer interest thanks to lower prices. So, there is a reasonable chance that condo prices may go down in 2025, though not by a massive margin.
One factor that might not emerge till later in the market is the influence of good cause eviction law. The local government may have deterred corporate buyers from entering the market by providing renters more protection and extending the rent control to market-rate apartments. Fewer buyers may cause the apartment rates to rise too much in the city.
Whether you are buying or selling, it’s important to understand the trends and ask questions like – Will New York apartment prices go down? Your New York City broker may be in a good position to answer this question accurately as they have a clearer picture of the market and knowledge of the transactions taking place.
