NYC Buyers, the Ball’s in Your Court

According to a recent Zillow analysis, “a median-income family would either need home values to fall by 18% or mortgage rates to drop from June’s 6.74% to 4.43% in order to afford a typical U.S. home.” In other words, waiting for both rates and prices to tumble is unrealistic. The New York Times goes further, pointing out the U.S. metros where a median-income household has the highest affordability for a median-priced home.

But while those national headlines may sound discouraging—spotlighting affordability pains, mid-6% mortgage rates, and limited inventory—New York City tells a more nuanced story. Here, the market is stabilizing, and that stability is creating opportunities. Rates remain elevated, but they’ve steadied. That predictability gives buyers confidence to lock in without fear of sudden spikes and helps sellers set realistic expectations around who qualifies.

At the same time, the NYC market is softening in subtle but meaningful ways. Middle-tier buyers now have room to negotiate, with median prices rising just 3–3.5% year over year—far less dramatic than the pandemic-era swings. Homes are averaging 55 days on the market, which means buyers have time and leverage, while sellers must price more strategically and highlight real value.

Of course, not all neighborhoods are moving in sync. Ridgewood in Queens, Greenwood Heights in Brooklyn, and Long Island City are all on the rise, offering relative affordability with growth potential. These emerging areas highlight that while Manhattan’s core remains costly, value still exists for buyers willing to look a little further out.

On the luxury side, developers are getting creative—covering closing costs, offering mortgage-rate buydowns, and adding other incentives to move inventory. Luxury sales are up nearly 30% year over year despite jumbo rates hovering around 6–6.7%. For buyers, this translates into added perks. For sellers, it underscores the importance of flexibility and imaginative deal terms.

Taken together, NYC is moving toward a more balanced market—one where neither bidding wars nor steep discounts dominate. Buyers now enjoy more inventory, less competition, and greater negotiating power. Sellers, meanwhile, can stand out by pricing smartly, staging effectively, and offering concessions where appropriate.

Yes, challenges remain, but New York City continues to prove resilient. With preparation, neighborhood-level insight, and strategic timing, both buyers and sellers can unlock exceptional opportunities—even in a still-hot market.

Serj Markarian