The Market Report: February 2025

Down to Business

If you were buying in Manhattan five years ago in 2020, inventory offered about a 1,000 more property options, around 14 percent more on the market than we have now as we roll into our second month of the year. We did see an expected uptick in inventory this past month in both Manhattan and Brooklyn; and anecdotally we’ve seen buyers dig into their searches more seriously, and those who had been well into searches are more seriously considering taking action or made offers on properties of interest.

For any prospective buyer in the city now, consider preparing for your home purchasing process in advance of touring properties. You’ve seen apartments throughout your time living in New York City, and likely know the attributes you like and dislike and hope to acquire, whether all will or will not be possible to achieve. Consider first meeting with your real estate advisor, experienced and knowledgeable about the mechanics of the buying process and the market. Consider getting some basic knowledge and tools in place that will make the process less clumsy and cumbersome, and more revealing when you are deep into the search, ultimately leading to more confidence to know the right property when it comes along and to be in the position to achieve getting it when it does.

Meet with your advisor to:

Understand the process. The purchasing process in New York City is one of the most complex and daunting. Your job isn’t to know all the ins and outs of navigating it – that’s why you hire an experienced and knowledgeable advisor. But understanding the steps and having the support to prepare for them is valuable.

Understand the market. Everyone seems to have an opinion on the real estate market, but word of mouth opinions and national media outlets are not sources for a good understanding of the market you are entering. New York City is a plethora of markets that cannot be over-generalized. One neighborhood and sector can be hot, while another just ten blocks away can be cool. An expert will help navigate that and set expectations.

Understand the types of properties. Coops, condos, townhouses, condops, pre-war buildings, residential conversions, loft spaces, commercial conversions, ground-up construction, and on. There’s a lot to choose from and knowing the nuances of your options will help identify the best direction for your needs and price-point.

Understand the opportunities. You may have your sights on one neighborhood or building. A deeply knowledgeable advisor can help affirm that decision based on your situation or may identify other opportunities that you haven’t considered – new areas and property types that could be wins for you – ones that meet your needs, budget and may offer more value.

Understand what is appropriate and practical. Too often buyers dig into their searches unaware of purchasing costs, building policies, financial expectations of a building and of a lender, the best lending options, completion timing of a new construction, and that list could grow very long. Figure as much out and prepare ahead of time for the most productive search, with the fewest upsets.

Understand your needs and wants. Your real estate advisor at their essence is there to help you achieve your goal. But you must have a goal that is aligned with what can be achieved. They have a fiduciary and ethical allegiance to you. Of the many ways they exercise that is to listen deeply and offer direction, affirmation and take responsibility to challenge you when needed to help you home in on how and what opportunities offer the best results for you. There is no real estate purchase that doesn’t require compromises.

Maybe this new year is your time to get ready to get down to business.

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