The latest inventory report shows that Manhattan’s supply of apartments for sale dropped to 6.9 months in March, creating a bit of a spring sales gridlock. While activity has picked up, it hasn’t reached the pace we typically expect this time of year. Brown Harris Stevens CEO Bess Freedman suggests that uncertainty around potential tariffs from the new administration, combined with broader economic concerns, may be contributing factors.
Despite the slowdown, Freedman remains optimistic about the housing market's resilience—whether in a bull or bear market—emphasizing that buying a home is a long-term commitment and a fundamentally different kind of investment than stocks. It offers shelter, security, and stability. While this year still has the potential to outperform expectations, she notes that it won’t be “smooth sailing”.
Freedman points to three key factors that could help unlock more momentum: increased inventory, price adjustments, and lower interest rates. The Federal Reserve is expected to cut rates three times this year, which could bring some relief to mortgage rates. Still, as I noted last week, the rental market remains especially active, driving rents higher as some buyers remain on the sidelines—held back by current prices and borrowing costs.
One of the biggest challenges continues to be pricing. Freedman notes that prices haven’t come down fast enough. However, there are signs of movement: Manhattan’s median home price dropped 6.3% year-over-year in January to $1.6 million. That said, all other boroughs saw price increases — ranging from 4.8% in Brooklyn to a striking 12% in Queens.
With the spring season still underway, I’ll be keeping a close watch on activity as we head into the summer months. The Q1 2025 Market Report will be released in the coming weeks and should offer clearer insights into where the market might be headed.