Weekly Market Pulse: Confidence Improves, Activity Normalizes

The second full working week of January confirms a familiar early-year pattern: sentiment improves first, transactions follow. Buyers are re-entering with intent, while sellers are testing pricing ahead of the spring cycle. The Howard Hanna NYC Consumer Sentiment Index increased from –17% to –7%, reflecting a typical post-holiday rebound as market participants recalibrate expectations.

Key KPIs driving the shift

• Signed contracts are accelerating across both boroughs

• New listings are rising week over week and year over year

• Inventory is stabilizing following a prolonged contraction

• Pending sales show mixed short-term signals consistent with normal seasonality.

Market Takeaway: Transition Phase Into Spring 2026

• Inventory contraction has paused but has not structurally reversed

• Seller activity is returning, though pricing discipline remains selective

• Buyer sentiment is improving faster than available supply

• New development continues to outperform in prime, well-capitalized locations.

For buyers, early-year conditions continue to offer leverage before competition intensifies. For sellers, execution will hinge on pricing accuracy and preparation as the market transitions into its spring acceleration phase.

Outlook:
Expect continued improvement in sentiment through late January, followed by a gradual pickup in contract velocity as spring inventory builds.

Manhattan Supply: Inventory Stabilizes After Prolonged Tightening

After eight consecutive weeks of declines, Manhattan active inventory rebounded to 4,949 homes (+1.1% WoW | –13.7% YoY). New listings increased to 269 units (+3% WoW | +18% YoY), now exceeding last year’s levels for the same period. This marks a clear inflection point as sellers begin positioning ahead of peak season.

Brooklyn Supply: Early Rebound Takes Shape

Brooklyn inventory increased to 2,837 homes (+1.5% WoW | –11.5% YoY), ending a ten-week contraction trend. New listings totaled 170 units (–6% WoW | +5% YoY), confirming that seller participation remains active on a year-over-year basis, particularly in core, demand-driven neighborhoods.

Manhattan Pending Sales: Increased 0.3% WoW to 3,074 units

Brooklyn Pending Sales: Declined 1.4% WoW to 1,762 units

These modest moves reflect timing effects rather than any deterioration in underlying demand.

Photo by Rihards Gederts | Howard Hanna NYC

Manhattan Consumer Sentiment: Clear Early-Cycle Signal

Manhattan recorded 172 signed contracts (+12% WoW | +32% YoY). The Howard Hanna NYC Manhattan Consumer Sentiment Index improved from –23% to –15%, marking a meaningful early-cycle inflection. Buyer engagement is expanding as market participants position ahead of the spring listing season.

Brooklyn Consumer Sentiment: Momentum Continues to Build

Brooklyn logged 91 signed contracts (+7% WoW | +14% YoY). The Howard Hanna NYC Brooklyn Sentiment Index rose from +17% to +25%, signaling strengthening confidence among value-driven buyers and first-move-up households entering 2026.

New Development Insights: Demand Broadens Early in the Year

New development activity remained constructive based on Marketproof data, with 33 signed contracts across 28 buildings, highlighting steady buyer engagement in well-positioned projects.

Top performers included:

• Eastlight (Kips Bay) and The Perrie (Turtle Bay) each signed 3 deals

• The Strathmore (Yorkville) signed 2 deals. 

The data continues to show that buyers are prioritizing location, pricing discipline, and delivery certainty as 2026 begins.

If you would like to chat about the most recent market activity,

feel free to contact us at [email protected] or connect with one of our Advisors.

Howard Hanna NYC brings the nation’s largest independent and family-owned brokerage to New York City, uniting the strength of a national network with the insight and sophistication of a local firm. Formed through joining forces with Elegran Real Estate, Howard Hanna NYC delivers a seamless, full-service experience backed by more than 15,000 agents across 500 offices in 14 states. The firm’s forward-thinking, agent-first culture continues to shape the future of real estate across Manhattan and the Tri-State area.Learn more at www.howardhannanyc.com.