Demand Momentum Cools After the Holiday Spike

NYC's residential market lost some momentum this week as buyer sentiment pulled back across both boroughs following the Memorial Day surge. However, the forward pipeline remained resilient, with pending sales continuing to edge higher in both Manhattan and Brooklyn despite softer contract activity and cooling sentiment.

The Howard Hanna NYC Consumer Sentiment Index decreased from +61% to +17%, easing after the holiday-driven spike recorded the previous week. While buyer enthusiasm moderated, sentiment remains in positive territory and transaction activity continues to move forward.

Supply conditions remain mixed across the city. Manhattan inventory held relatively steady and remains below last year's levels, while Brooklyn inventory expanded modestly as new listing activity rebounded.

While buyers appear less aggressive than they were immediately following Memorial Day, rising pending sales suggest many remain actively engaged and are continuing to transact when pricing and value align.

Overall, the market appears to be transitioning into a more measured summer phase, where buyers remain active but increasingly selective, and where pricing strategy, property presentation, and realistic seller expectations will play an even greater role in driving successful transactions.

Manhattan Supply: Inventory Holds Steady, Now Below Last Year

Manhattan active inventory held roughly steady at 6,741 homes (-0.3% WoW | -9% YoY), now sitting modestly below last year’s levels. New listings totaled 327 units (-37% WoW | –16% YoY), reflecting a pullback in seller activity both week-over-week and year-over-year.

This slowdown in new listing flow may begin to support inventory stabilization heading into early summer.

Brooklyn Supply: Inventory Edges Up as New Listings Rebound

Brooklyn inventory increased to 3,748 homes (+0.3% WoW | +2.5% YoY), reflecting moderate supply growth year-over-year and a nearly flat week-over-week reading. New listings increased to 235 units (+17% WoW | +14% YoY), indicating stronger weekly seller participation and solid year-over-year growth in new listing volume.

This suggests Brooklyn inventory may continue expanding gradually if new listings keep returning to the market, though overall supply growth remains measured.

Manhattan Pending Sales: Increased +1% WoW to 3,654 units, a modest gain that signals a steady forward transaction pipeline even as sentiment cools.

Brooklyn Pending Sales: Increased +1.8% WoW to 2,033 units, indicating stable deal flow as buyers actively move toward contract.

Photo by Rihards Gederts | Howard Hanna NYC

Manhattan Consumer Sentiment: Momentum Turns Negative

Manhattan recorded 302 signed contracts (+19% WoW | +30% YoY), reflecting strong improvement both week-over-week and year-over-year.

The Howard Hanna NYC Manhattan Consumer Sentiment Index decreased from +28% to -12%, marking a sharp contraction as the market enters the summer of 2026.

This reversal suggests buyers are turning more selective as elevated inventory and the seasonal shift into summer temper urgency.

Brooklyn Consumer Sentiment:  Momentum Eases From Its Spring Peak

Brooklyn recorded 160 signed contracts (-23% WoW | +10% YoY), representing a pullback from the prior week’s elevated pace while still running ahead of last year.

The Howard Hanna NYC Brooklyn Consumer Sentiment Index decreased from +159% to +95%, reflecting a meaningful cooling in buyer momentum, though sentiment remains firmly positive heading into the summer market.

This moderation points to demand normalizing from an exceptional spring run rather than weakening outright.

New Development Insights: Luxury and Branded Product Lead Sponsor Demand

According to Marketproof data, new development activity recorded 31 signed contracts across 26 buildings during the week of May 18, 2026.

Top-performing developments included:

• One Domino Square (Williamsburg) with three contracts

• The Towers of The Waldorf Astoria (Midtown) with two contracts.

Demand continues to concentrate in well-located, lifestyle-oriented developments with strong pricing alignment, reinforcing buyer preference for turnkey products in prime neighborhoods.

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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