By Serj Markarian, Licensed Associate Real Estate Broker
A few weeks ago, I highlighted the most-searched neighborhoods on StreetEasy along with their median prices, offering insight into what to expect this spring. Now, it appears that several sought-after NYC neighborhoods—mainly in Manhattan—have seen double-digit year-over-year declines in new listing median prices. This shift has spurred an early spring rush, with buyers jumping in ahead of the usual seasonal surge to take advantage of significantly reduced prices.
In January, the number of homes going into contract across the city surged 10.7% year-over-year, while the median asking price dropped 2.1%, according to StreetEasy. Greenwich Village and Midtown Manhattan saw the steepest declines, with median prices falling 31% and 28%, respectively. Long Island City in Queens matched Midtown’s 28% drop, while Chelsea and Gramercy Park rounded out the top five with 20% decreases each.
The luxury market is off to a strong start, with 29 contracts signed in the first week of February alone, totaling more than $258.5 million, according to Olshan Realty. While Manhattan saw the most significant median price declines, Brooklyn moved in the opposite direction, with median prices rising 4.4% year-over-year. Though the surge in pre-spring activity is promising, StreetEasy warns that it could further tighten inventory, potentially shifting the market in favor of sellers—especially with mortgage rates remaining high.
It's also worth noting that buyers are increasingly favoring new developments with extensive amenities over traditional white-glove co-ops on prestigious NYC addresses. However, luxury condos remain in limited supply, with inventory at historically low levels. With developable land in Manhattan scarce, this shortage has only intensified demand for these high-end units.Adding to the pressure, the pace of sales has remained highly active since September, further tightening NYC’s already limited inventory.
With mortgage rates stabilizing around 7%, buyers seem to have accepted that the ultra-low 2–3% rates of the pandemic were a rare anomaly. As a result, many are acting now, recognizing that limited supply and growing demand could soon push prices back up. If you’ve been considering buying, now may be the time to start exploring your options—before the market shifts further in favor of sellers this spring.
