Dear Clients and Friends,

October 2025 saw an increase in monthly signed contracts (the highest October figure since 2021), and a simultaneous decrease in new listings.  Supply has likely peaked for the season and will not begin to rise again until January. That said, many buyers will continue to look through the holiday season and would welcome new inventory. The Fed also cut interest rates at the end of October by a quarter point for the second time in less than two months. Although rate cuts are generally positive for property price appreciation, we have not yet seen a dramatic effect on deal leverage or pricing in the NYC market. (Similarly, NYC was not markedly negatively impacted by tariffs and the corresponding dip in financial markets earlier this year.)

The luxury market (properties $4M+) had a healthy October 2025 with 115 contracts signed. The last three weeks of the month (the height of the Fall market) were particularly strong, with 98 contracts signed for an aggregate deal volume of $947,367,649 -- nearly double the $581,494,900 signed over 71 contracts in the same period in 2024.

Turning to top-of-mind news, there has been frequent speculation if Mamdani’s Mayoral win will cause affluent New Yorkers to leave the city. The luxury sector’s robust performance over the last month (when Mamdani was already favored to win) does not support that speculation. Historically speaking, the health of the City’s high-end market is more directly impacted by: i) the strength of Wall Street and the financial and securities industries, and ii) NYC’s draw as a destination for some of the best schools and job opportunities. 2025 Wall Street profits are projected to reach ~$60BN based on year-to-date trends (another banner year following 2024) and financial service firms in Manhattan have been leaders in return-to-office policy. Manhattan office tenants also signaled their ongoing commitment by signing ~3.6M square feet of new space in October, yielding a 2025 YTD total that is already higher than the full year of 2024. Lastly, any proposed increase in income taxes on higher earners in NYC by Mamdani will require Governor Hochul’s sign off, which is less likely when she faces an election year in 2026. Of course, no one has a crystal ball, but we will be sure to keep you apprised of NYC’s market developments in real time.