Market Update: Q2 2025

We have two main seasons when market activity is at its peak: spring and fall. Alternatively, summer and winter tend to be slower times in the market.

Purchasers aren’t as active during summer and winter. In summer, people are traveling and want to enjoy the weather, whereas in winter, people are recouping from the holidays and want to be cozy at home.

Because these patterns are predictable, experienced brokers encourage sellers to follow the path of least resistance. It’s best to sell in line with selling seasons, unless something unique is happening in the market, or a homeowner has extenuating circumstances.

In early January of this year, there was an atypical spike in NYC buyer activity. People who had put their purchases on hold for a year or so, hoping interest rates would drop, could no longer wait. Their families needed to upsize, downsize, or relocate.

At the start 2025, many purchasers entered the market with serious focus, which is quite different from a normal year. This surge of activity didn’t last, though. This wave of focused purchasers found homes, closed on them, and moved in. This initial fervor dissipated, and it seemed to steal some thunder from the spring market.

Although the spring market was healthy in some regards, in hindsight it was mostly property-driven. If a property was unique, the owner enjoyed busy open houses and multiple offers. However, if property had challenges (eg, an expiring tax abatement, lots of similar competing properties on the market), buyers were nit-picky and making low-ball offers.

I’ve seen some of the lowest low-ball offers of my career this quarter. Several brokers called me to commiserate and asked why the market was “so weird.”

In a nutshell, we saw pent-up demand in January. This was followed by a wave of people who could stomach purchasing at higher interest rates for unicorn properties, mixed with those who figured they’d take a stab at participating, but ultimately low-balled because their monthlies would be so high.

Some buyers believe there’s an opportunity to low-ball because interest rates are ~7%, but this is likely the new normal for a stretch of time. More remains to be seen, as political and geopolitical influences are in flux, and uncertainty has an impact on the market.

However reluctantly, I think within a year or so people will adjust their sails to the higher interest rate market. None of the low-ball offers that came across my desk or that I heard about were accepted. Even so, some properties are taking longer to sell and are requiring seller concessions.