Market Retrospect: Q1-2 2025
Alison McQueen
Licensed Associate Real Estate Broker
Licensed as Alison L. McQueen
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Prerequisites for prospective homebuyers in order to receive services from Corcoran:
i. There is no general requirement to provide photo identification prior to a property showing. However, prior to entry to a Corcoran office, customers may be required to present photo identification for security or similar purposes. Also, individual property owners may require photo identification prior to a showing, and we will communicate this information to buyers or tenants in advance of such showing.
ii. An exclusive buyer representation agreement is not required.
iii. A pre-approval for a mortgage loan is not required to work with us, per se, however, individual property owners may require one – and if so, we will communicate that to buyers as applicable for any properties buyers may wish to view.
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In NYC, we enjoy some level of market activity throughout the year, but to maximize the probability of achieving the highest possible price for your asset, it’s better to move in step with the majority of purchasers.
Interestingly, in early January of this year, there was an atypical surge in buyer activity. During a notoriously sleepy season, people who had put their purchases on hold for a year or so, hoping interest rates would drop, could no longer wait. These families needed to upsize, downsize, or relocate.
At the start 2025, purchasers entered the NYC market with serious focus, which is quite different from the start of an average year. This wave of purchasers found homes, closed on them, and moved in. This initial fervor dissipated, and seemed to steal some thunder from the Spring market.
Although the Spring market seemed healthy in certain regards, in hindsight it was mostly property-driven. If a property was unique, the owner enjoyed busy open houses and multiple offers, many of which were all cash. However, if property had challenges (eg, an expiring tax abatement, lots of similar competing properties on the market), buyers were nit-picky and making lowball offers.
I’ve seen some of the lowest lowball offers of my career in Q2 2025. Several brokers called me to commiserate, and asked why the market was “so weird.”
Some buyers believe there’s an opportunity to lowball because interest rates are ~7% — and they believe a reduction is coming any day now. Unfortunately I think this is the new normal for a bit, and buyers who require financing will adjust their sails within a year or two.
More remains to be seen, as political and geopolitical influences are in flux, and uncertainty impacts market behavior. We’ll see what the typically busy Fall season brings.