Early February Signals Diverging Borough Dynamics

The Howard Hanna NYC Consumer Sentiment Index reflected a bifurcated market this week. Manhattan experienced a temporary pullback in contract activity despite improving sentiment metrics, while Brooklyn re-accelerated meaningfully, supported by renewed buyer engagement.

Importantly, negotiating leverage remains highly asset-specific, with well-priced homes continuing to transact efficiently while misaligned listings face extended exposure as buyers exercise increased selectivity.

Outlook: As February unfolds, the market is shifting from observation to execution. Buyers are increasingly active but remain selective, while sellers are methodically introducing inventory ahead of the spring season.

Bottom line: Momentum is rebuilding, but it is uneven and pricing-sensitive, favoring assets that align with buyer expectations on value and quality.

Manhattan Supply: Inventory Growth Continues Ahead of Peak Season

For the third consecutive week, Manhattan active inventory increased to 5,313 homes (+1.9% WoW | –4.3% YoY). New listings totaled 333 units (+25% WoW | –1% YoY), continuing to trail last year’s pace. This reflects a measured seller ramp-up, not a surge, as owners prepare strategically for the spring cycle.

Brooklyn Supply: Inventory Pauses as New Listings Rebound

Brooklyn inventory edged down to 2,917 homes (–1.1% WoW | +1.2% YoY), marking a brief contraction after three consecutive weeks of growth. New listings rose sharply to 153 units (+23.3% WoW | –17% YoY), indicating that early February is beginning to unlock supply, even as volumes remain below last year’s levels.

Manhattan Pending Sales: Decreased -3.1% WoW to 2,716 units

Brooklyn Pending Sales: Declined -0.1% WoW to 1,654 units

Pending sales softened modestly week over week, consistent with seasonal timing effects rather than structural weakness. Buyers continue to delay commitments selectively as additional inventory is anticipated.

Photo by Rihards Gederts | Howard Hanna NYC

Manhattan Consumer Sentiment: Sentiment Improves Despite Contract Pullback

Manhattan recorded 141 signed contracts (–23% WoW | –33% YoY). Despite lower weekly deal volume, the Manhattan Consumer Sentiment Index remained improved at –9%, sustaining the early-cycle inflection seen in prior weeks. This divergence suggests buyer intent is stabilizing, even as execution remains cautious.

Brooklyn Consumer Sentiment: Buyer Confidence Re-Accelerates

Brooklyn logged 109 signed contracts (+27% WoW | –13% YoY). The Brooklyn Consumer Sentiment Index surged from +18% to +48%, signaling a renewed wave of buyer engagement entering February. The borough continues to demonstrate relative strength, particularly among first-time and value-driven buyers.

New Development Insights: Demand Holds in Well-Priced, Prime Projects

New development activity remained constructive based on Marketproof data, with 28 signed contracts across 20 buildings, underscoring steady buyer engagement in select, well-positioned projects as 2026 gains traction.

Top-performing developments this week included:

• 1122 Madison Ave (Upper East Side) with 4 signed contracts

• The Residences at West 9th Street (Greenwich Village) with 3 signed contracts

The data continues to reinforce that buyers are prioritizing location quality, pricing discipline, and delivery certainty, a consistent theme as early-cycle demand takes shape.

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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