Dear Clients and Friends,

Both the number of new listings and signed purchase contracts declined in May 2025 versus the prior month, and we are now likely reaching the point when inventory has peaked for the Spring/Summer period. For comparative context, May 2025 new listing supply levels were nearly identical to the same month last year, while the number of contracts signed in May 2025 actually exceeded May 2024.

The luxury sector has continued overperforming the broader market. Underscoring this trend, the 155 contracts signed for Manhattan listings above $4 million in May 2025 was up on both a monthly and year-over-year basis (exceeding April 2025’s 117 and May 2024’s 106). Prime Brooklyn has also fully solidified its position as a preeminent destination, particularly for townhouse and condo buyers. In fact, the last week of May saw 29 contracts signed above $2 million in Brooklyn (with an average purchase price of ~$3 million), nearly double the same period last year.

Lastly, the most recent estimate completed by Placer.ai this Spring showed NYC leading the nation in a rebound in office turnout. While nearly all major US metropolises have seen increases in full-time and hybrid office attendance, NYC was only ~6% below pre-pandemic levels compared to the national average of ~30%. The diversity of NYC’s finance, tech, fashion, real estate, and other professional headquarters has always been one of the bedrocks of its residential demand.