Dear Clients and Friends,

Monthly new listing activity decreased in December 2025, both in comparison to the prior month and on a year-over-year basis. Meanwhile, the number of new purchase contracts signed in December 2025 increased slightly, reflecting relatively brisk late November through early December deal activity. Overall, the market has been relatively stable (rather than overheated or frothy), with motivated, intentional, and mostly cool-headed buyers and sellers driving activity. NYC’s 4Q25 median price per square foot of $1,362 was unchanged from the previous quarter and on a year-over-year basis. Supply also remained quite tight, with December inventory reaching its lowest level since 2015.

Turning to the luxury market (properties $4M+), the 96 contracts signed in December 2025 represented a decrease from both November 2025 and December 2024. While December activity was somewhat muted, the full-year 2025’s total of ~1,463 contracts signed represented the second highest year on record for the luxury market (bested only by 2021’s 1,623 contracts) and an 11% increase from 2024. Condo contracts were signed at a three-to-one ratio to coops, with half of those condo sales comprised of new development units. While each property’s sub-market needs to be evaluated individually, two factors that contributed to 2025’s banner performance were a strong year for Wall Street and sellers more efficiently ‘meeting the market’ in their pricing. At the same time, the median rent for the top 10% of apartments grew 17% YoY, making the cost of renting-vs.-buying starker.

Lastly, in December the City Council approved Bill 1120 with a veto-proof majority ensuring its passage into law. The bill will require coop boards to let applicants know within 15 days if their application is considered complete, followed by a maximum of 45 days to accept or reject the sale. We welcome this positive step towards making the cooperative sale process more approachable for purchasers -- particularly given the fact that approximately 70% of Manhattan’s inventory (particularly in Gold Coast UES and UWS locations) is comprised of coops.