While both the average and median sales prices for all apartments were down from the second quarter of 2025, they were higher than the prior year. A sharp drop in the average price for new development closings was a main factor in the quarterly decline in prices. Keep in mind that contracts to purchase new development units can be signed months or even years in advance of closing, so their prices are not always indicative of current market conditions.

Looking at just resale apartments, the average and median prices were virtually unchanged from the previous quarter, but up from 2024’s third quarter. The co-op market was strong, posting an increase in average price compared to both the second quarter of 2025, and one year ago.

After a solid third quarter, the Manhattan market is poised for a very active end of 2025. Mortgage rates are near an 11-month low, and with a slowing labor market and tame inflation should continue to trend lower. The Fed cut short-term rates at their September meeting and are expected to cut twice more this year. This should help economic growth remain steady despite a notable slowdown in hiring over the past few months. Wall Street is having another very strong year, with bonuses expected to be above last year’s record of $47.5 billion. These factors will keep demand strong at a time when inventory has fallen to a 5.7-month supply.

A rising stock market combined with lower mortgage rates helped fuel an increase in both Brooklyn apartment sales and prices in the third quarter. After falling sharply in April following new tariff announcements, stock prices kept rising to record highs through the end of the third quarter. Mortgage rates began falling in June and reached an 11-month low in mid-September. These conditions led to strong gains in both the average and median apartment prices compared to last year’s third quarter. Part of these increases can be attributed to a pickup in high-end new development closings, which led to a 24% jump in the average new development price. Keep in mind that contracts to purchase new development units can be signed months or even years in advance of closing, so their prices are not always indicative of current market conditions. The market was also more active than during 2024’s third quarter, with a 6% increase in reported closings. We expect sales to remain strong in the fourth quarter, as mortgage rates are expected to trend lower due to a slowing labor market and tame inflation. The Fed cut short-term rates at their September meeting and are expected to cut twice more this year. This should help economic growth remain steady despite a notable slowdown in hiring over the past few months. Wall Street is having another very strong year, with bonuses expected to be above last year’s record of $47.5 billion.