Overall Market

February 2026 delivered an interesting dynamic: new signed contracts increased month-over-month, while new listing supply declined. In other words, demand accelerated as fresh inventory pulled back.

For those quietly considering a sale, this is worth noting. Buyers are active — and they need product. For contract activity to continue climbing, more listings will ultimately need to come online.

February also brought two of the largest blizzards in recent memory, which may have contributed to some interruptions in typical market pacing. As the weather normalizes and we move into the spring cycle, it will be telling to see how activity reaccelerates.

On the financing front, the average 30-year fixed mortgage rate dipped below 6% for the first time since 2022. While this hasn’t triggered a dramatic surge of new buyers, it may provide incremental momentum for opportunistic purchasers to transact with greater focus.

Luxury Market

The luxury segment remained strong. There were 123 contracts signed above $4M in February 2026, up from 103 in January 2026 and 114 in February 2025.

Year-over-year pricing was even more striking:

• February 2026 average asking price: $11.28M

• February 2025 average asking price: $8.38M

Much of this jump was driven by a few super-luxury transactions — most notably the Penthouse at 1122 Madison Avenue, last asking $89.5M (~$9,521 per interior square foot / ~$7,850 per total interior and exterior square foot). This represents the largest single contract signed this year. As mentioned in last month’s update, the sponsor began selling quietly off-market in January and is already approximately 70% sold across its 26 residences — a notable absorption pace in today’s environment.

Brooklyn’s luxury market also showed strength amid low inventory. Townhouses are regularly trading in the $5M–$8M range, and at One Domino in Williamsburg (where we recently transacted), Penthouse 3A went under contract at a last asking price of $7M — setting a new Northern Brooklyn new-development benchmark at approximately $3,313 per square foot.

City Policy & Housing

In his second full month as Mayor, Mamdani has continued staffing his administration with long-standing pro-housing advocates, including Andrew Fine, Leila Bozorg, and Dina Levy. The broader housing team appears aligned around expanding supply and accelerating development approvals as part of a larger affordability agenda.

Final Thoughts

Overall, February reinforced a theme we’ve been watching closely: steady, deliberately paced demand meeting constrained supply. As we enter the spring market, positioning and timing will matter.

If you’re weighing a purchase, considering a sale, or simply curious how these dynamics may affect your building or neighborhood specifically, we’re always happy to provide context.

Warmly,

Alex and Sybille