The Market Report: August 2025

The Pucker | Heinlein Team
08/1/25

Silver Lining

Amid the noise of interest rates, and tariffs, tariffs and tariffs, the stock market is persevering, despite doubts and expected fluctuations, as are several sectors in our New York City’s real estate market. We’ve seen inventory in both Manhattan and Brooklyn slide down again this past month, driving demand in several neighborhoods. Likewise, the luxury market in particular – mostly supported by all-cash transactions and undaunted by interest rate concerns – has been as hot as the past few months’ weather.

Some great opportunities exist right now for certain buyers and sellers; and this next 4-6 weeks before the fall season begins could be a great time to take advantage, particularly as many buyers run away for the weekends or remain on the sidelines until fall. The buyers who are shopping are serious and focused.

There are a handful of neighborhoods that offer great opportunity for parents buying for or with children or gifting funds for their adult child’s purchase. Rents are soaring in both Manhattan and Brooklyn, experiencing several months of increases, with momentum that is likely to continue for several more. For students or young professionals who reside in the city, the purchase or co-purchase is proving to be advantageous from a long-term investment perspective. For parents, the gifting can also be an advantageous estate planning strategy, offering some win-wis.

There are a handful of neighborhoods that offer selection and fair pricing, despite lower than historical levels of inventory. There are value-buys, particularly in Manhattan for both end-users who are first-time home shopping and those who currently own and want to trade up.

Likewise, for the empty nesters who want to be back in the city or for those who are shopping for a pied-a-terre, there are neighborhoods that currently offer options and fair pricing. The Upper East Side alone currently has nearly 500 studios and one-bed units on the market, not including private listings that are not yet public, or shadow inventory, the new development units that are available but not yet released. And if a two-bed is what you need, there are currently nearly 350 actively available to pick from in the neighborhood. If the Upper West Side is your choosing, it also has fair picking – over 350 studio and one-beds and nearly 300 two-beds.

For potential sellers in various sectors, opportunity knocks as well and may be a good time to determine if the fall market is the right time to list. Take the central Brooklyn townhouse market – it is blazing, up 35% last quarter year-over-year. Neighborhoods like Prospect Heights and Fort Greene have little inventory for competition. Likewise, several downtown Manhattan neighborhoods have pent-up demand, where inventory is far lower than consumer need.

If you’re just considering a purchase or sale, start the conversation with an experienced real estate advisor to determine if now is the right time to roll up your sleeves on a search or prepare for a sale while your fall competition enjoys their beach time and spritzes.

----------------------------