Buyers and sellers alike are asking their peers and New York City brokers, “What is the market prediction for 2025?” Accurate predictions can help them make more informed decisions. Multiple brokers and experts generally predict that there might be many buyers in the market, albeit without a comparable number of sellers. So, the market, in general, will lean more towards sellers.
Co-ops are likely to see more interest than they saw in the previous year. The main driver behind his interest would be the lower price tag, which was, on average, 26% lower than similar/comparable condo properties in 2024. In addition, the interest rates haven’t fallen significantly enough for mortgages to become substantially more affordable, so more buyers might be willing to go through the challenging process of buying a co-op.
Condo prices are expected to rise, especially in Manhattan. The luxury market did well in 2024 and the trend is expected to extend into 2025. This is endorsed by the 2024 year-end report generated by Streeteasy, which indicated that Manhattan neighborhoods were most actively searched by both buyers and renters and the persistently high demand of the borough and a higher buyer concentration might give sellers more room to raise their prices. Nine out of ten most searched neighborhoods for rentals and eight out of ten most searched by buyers were in Manhattan.
One prediction for rents and tenants is tied to the FARE Act, which is going to come into effect in June 2025. It’s expected to lower the up-front cost of rentals for tenants by 40%.
The New York City broker specializing or operating in specific neighborhoods or property types (like co-ops and condos) might offer you more nuanced insights.
