Weekly Market Pulse: Inventory Builds, Sentiment Diverges

The market entered a short-term normalization phase following the stronger early-January rebound. Inventory is rebuilding across both boroughs, while buyer sentiment shows divergence between Manhattan and Brooklyn. The Howard Hanna NYC Consumer Sentiment index framework indicates a post–New Year recalibration, not a trend reversal, with sentiment easing from –3% to –11% as early momentum normalizes.

Key KPIs shaping the week:

• Inventory: Second consecutive week-over-week increase across both boroughs

• New listings: Mixed signals, still lagging year-over-year

• Pending sales: Short-term pullback driven by timing effects

• Signed contracts: Manhattan softened while Brooklyn strengthened

Market Takeaway: Transitional Phase, Not a Trend Break

This week reflects absorption of new supply rather than demand deterioration. Buyers remain active but increasingly price-sensitive, while sellers are re-entering the market selectively. Pricing accuracy continues to be decisive. Bottom Line: selectivity is the theme.

• Inventory is rebuilding, not flooding the market

• Manhattan shows temporary cooling; Brooklyn continues to gain momentum

• Sellers must align pricing with current absorption capacity

This is a positioning phase, not a turning point. The spring market narrative is still forming.

Outlook

Expect near-term volatility in weekly indicators as inventory rebuilds. Directionally, sentiment and activity should stabilize heading into February, with clearer acceleration expected closer to the spring listing cycle.

Manhattan Supply: Inventory Growth Continues

Manhattan inventory expanded for the second consecutive week, reaching 5,143 homes (+3.9% WoW | –5.4% YoY). New listings rose to 301 units  (+11.9% WoW | –17% YoY). While weekly growth is notable, supply remains below last year’s levels, underscoring ongoing structural tightness.

Brooklyn Supply: Gradual Rebuild Underway

Brooklyn inventory increased to 2,914 homes  (+2.7% WoW | +1.4% YoY), marking the second straight week of growth. New listings totaled 169 units (–0.6% WoW | –11% YoY), indicating that seller participation remains subdued relative to last year, though inventory momentum suggests activity should improve in coming weeks.

Manhattan Pending Sales: Declined 8.3% WoW to 2,818 units

Brooklyn Pending Sales: Declined 4% WoW to 1,690 units

These declines reflect timing and seasonal effects, not a breakdown in buyer demand.

Photo by Rihards Gederts | Howard Hanna NYC

Manhattan Consumer Sentiment:  Temporary Cooling

Manhattan recorded 154 signed contracts (–10% WoW | –22% YoY). The Howard Hanna NYC Manhattan Consumer Sentiment Index declined from –15% to –23%, signaling a short-term pause following the stronger first half of January. Buyer activity remains present but more selective.

Brooklyn Consumer Sentiment: Confidence Accelerates

Brooklyn logged 101 signed contracts (+13.5% WoW | +1% YoY). The Howard Hanna NYC Brooklyn Sentiment Index surged from +25% to +38%, highlighting strengthening confidence among value-driven and first-move-up buyers entering 2026.

New Development Insights: Demand Remains Selective but Resilient

New development activity moderated but remained constructive. Marketproof tracked 26 signed contracts across 21 buildings, reflecting continued buyer focus on quality assets rather than broad-based momentum.

Top performers this week:

• The Strathmore (Yorkville): 3 signed contracts

• 96 + Broadway (Upper West Side): 2 signed contracts

• The West Residence Club (Clinton): 2 signed contracts

Buyer behavior continues to emphasize location, pricing discipline, and delivery certainty, consistent with an early-cycle environment.

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.

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