Demand Firms Into August as Supply Vanishes at a Two-to-One Clip

August opened with the week’s most surprising combination: contracts rose in both boroughs against fresh 2026-high mortgage rates, while supply fell off a cliff. Manhattan inventory dropped 10% in a single week to its deepest deficit of the season, Brooklyn slipped below last year for the first time this cycle, and both pipelines resumed building. The seasonal lull is here; the seasonal inventory build is not.

The Howard Hanna NYC Consumer Sentiment Index improved from +19% to +28%, snapping a two-week cooldown with both boroughs contributing to the rebound.

What This Means for the Last Month of Summer 2026

For buyers: Rates at 2026 highs are the headline, but the binding constraint is the shelf: both boroughs now hold less inventory than a year ago, and new listings just hit their thinnest week of the season. August’s quiet open houses are your window, and the market is telling you what works: a well-priced Upper West Side listing drew five showings and a fast offer this week. When supply returns after Labor Day, so does the competition.

For sellers: Discounts remain tight in every price tier, from 3.2% under $1 million to 4.3% above $4 million, and disciplined pricing is still finding buyers even in the lull. Listing now means facing 16.6% less Manhattan competition than last year; waiting for September means preparing now to lead the post-Labor Day wave, not join it.

Overall, demand firming into rate highs while supply evaporates at a two-to-one clip sets up the tightest fall opening of this cycle. The lull is in activity, not in the balance of power.

Manhattan Supply: A Sixth Straight Decline, and the Steepest Yet

Manhattan active inventory fell to 5,191 homes (−10% week-over-week | −16.6% year-over-year), a sixth consecutive weekly decline and by far the sharpest of the run, pushing the year-over-year deficit to its deepest of the season. New listings totaled 138 units (−30% week-over-week | −22% year-over-year), the thinnest week of fresh supply this season.

August’s delisting wave and steady absorption are draining the shelf from both ends: per UrbanDigs, net supply is disappearing at roughly a two-to-one clip. Whatever the fall market brings, it will open from the lowest inventory base of this cycle.

Brooklyn Supply: Below Last Year for the First Time This Season

Brooklyn inventory decreased to 3,417 homes (−4% week-over-week | −1.3% year-over-year), crossing below last year’s level for the first time this season after holding a cushion all spring. New listings decreased to 144 units (−9% week-over-week | −16% year-over-year), a notable pullback on both timeframes.

The extra choice that defined Brooklyn’s early summer is gone: supply is now shrinking on the year in both boroughs. With contract activity still ahead of last year, sellers who list into this stretch meet demand with less on the shelf than at any point in 2026.

Pending Sales: The Pipeline Resumes Building

The forward pipeline turned higher again this week after last week’s pause, with both boroughs adding deals even through the quietest stretch of the calendar.

•       Manhattan pending sales: up +0.8% week-over-week to 4,050 units, back within reach of the early-July high.

•       Brooklyn pending sales: up +2.5% week-over-week to 2,468 units, a fresh summer high for the borough.

Photo by Rihards Gederts | Howard Hanna NYC

Manhattan Consumer Sentiment: Contracts Rebound Against 2026-High Rates

Manhattan recorded 192 signed contracts (+10% week-over-week | −7% year-over-year), a weekly rebound through the August lull, with activity still running modestly below last year’s pace.

The Howard Hanna NYC Manhattan Consumer Sentiment Index improved from −2% to +7%, returning to positive territory after a single week below neutral. A demand rebound in the same week mortgage rates hit fresh 2026 highs is the more telling signal: buyers are responding to scarcity, not waiting on the Fed.

Brooklyn Consumer Sentiment: Momentum Returns

Brooklyn recorded 122 signed contracts (+8% week-over-week | +6% year-over-year), up on both timeframes and back ahead of last year’s pace.

The Howard Hanna NYC Brooklyn Consumer Sentiment Index increased from +56% to +68%, reasserting the firmly positive lean that has made Brooklyn the summer’s most consistent borough.

New Development Insights: One Queens Building Just Outsold Everything

According to Marketproof data, new development activity recorded 43 signed contracts across 23 buildings during the week of August 3, 2026, the strongest weekly tally since mid-July, powered by a single standout. Top-performing developments included:

•       Centric (Woodside, Queens) with 17 signed contracts, leading the entire market and posting the biggest single-building week of the summer

•       Monogram New York (Turtle Bay) with two signed contracts

After Astoria, Greenwood, and Astoria-Ditmars led recent leaderboards, a Woodside project clearing 17 contracts in one week makes the point emphatically: outer-borough sponsor demand is no longer a breadth story, it is the headline.

Click HERE to review this week’s activity on Marketproof.

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