Early-Cycle Stabilization as Buyers Re-Engage Ahead of Spring

The Howard Hanna NYC Consumer Sentiment Index improved meaningfully increasing from -5% to-2% this past week, signaling a gradual normalization in buyer psychology as 2026 begins. While activity remains selective, buyers are increasingly re-entering the market, particularly in well-priced, quality inventory, as expectations around rates, supply, and pricing clarity begin to stabilize.

Outlook: As January concludes, the market is transitioning from caution to preparation. Buyers are positioning early, while sellers are beginning to test pricing ahead of the spring cycle. Momentum remains uneven across segments, but the direction is constructive.

Manhattan Supply: Inventory Expands as Sellers Position for Spring

For the second consecutive week, Manhattan active inventory increased to 5,212 homes (+1.3% WoW | –5.7% YoY). New listings totaled 267 units (–11.9% WoW | –4% YoY), now trailing last year’s pace. This pattern reflects a measured but intentional ramp-up by sellers preparing for peak season rather than a rush to market.

Brooklyn Supply: Listing Pace Slows Despite Inventory Growth

Brooklyn inventory rose to 2,950 homes (+1.2% WoW | +1.8% YoY), marking a third straight week of inventory expansion. New listings declined sharply to 124 units (–26.6% WoW | –30% YoY), reinforcing that late January remains seasonally slow for new supply, even as existing inventory builds.

Manhattan Pending Sales: Decreased -0.5% WoW to 2,805 units

Brooklyn Pending Sales: Declined -2.2% WoW to 1,652 units

Pending sales moderated modestly week over week, consistent with late-January seasonality rather than demand deterioration. This pause aligns with buyers timing decisions around expected spring inventory rather than exiting the market.

Photo by Rihards Gederts | Howard Hanna NYC

Manhattan Consumer Sentiment: Buyer Confidence Rebounds Sharply

Manhattan recorded 183 signed contracts (+18.8% WoW | +11% YoY). The Manhattan Consumer Sentiment Index improved from –23% to –9%, representing a notable early-cycle inflection. Buyer engagement is broadening as participants anticipate increased spring inventory and seek to lock in opportunities before competition intensifies.

Brooklyn Consumer Sentiment: Momentum Moderates After Strong Start

Brooklyn logged 86 signed contracts (–15% WoW | –31% YoY). The Brooklyn Sentiment Index eased from +38% to +18%, indicating a mild pullback after earlier strength. This reflects more deliberate decision-making among first-time and move-up buyers rather than a structural slowdown.

New Development Insights: Demand Broadens Early in the Year 

New development activity remained constructive based on Marketproof data, with 46 signed contracts across 36 buildings, underscoring steady buyer engagement in well-positioned projects early in 2026.

Top performers included:

• The Village West (Greenwich Village) and 755 Washington Avenue (Crown Heights) each signed 3 deals

• The Elisa (Chelsea) 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.