What lower prices in the Big Apple could mean for buyers and sellers
A new report from Realtor.com indicates a decline in New York City home prices during July. The median listing price for a home in the city fell to $1,452,500, a “substantial” drop from the previous month.
The report also found a tightening in the housing market, with the number of listings shrinking 5.3% from June. This is a larger decrease than is typically seen for this time of year. Additionally, homes are spending more time on the market, taking an average of 81 days to sell, which is 11 days longer than the previous month and one day longer than July of last year.
The drop in local prices comes amid a complex national real estate landscape. According to reporting by Bankrate, the average 30-year fixed mortgage interest rate has held stubbornly in the mid-to-high 6% range for much of 2025, a persistent factor that has limited buyer affordability. While the rate has recently dipped to a 10-month low, it remains a deterrent for many prospective homeowners, influencing a broader trend of cautious buying and reduced transaction volume.
Fannie Mae recently indicated that there's little chance of average rates slipping below 6% either this year or next. Meanwhile, a recent report by Zillow showed that home values are falling in around half of the US's top 50 most prominent metros, highlighting a slowing housing market and a pendulum that's slowly ticking back in favor of buyers over sellers.
The number of unsold homes on the national market reached its highest level since May 2020, though it remains below the roughly 2 million homes for sale before the pandemic. The national picture reflects a wait-and-see approach, with some experts anticipating that buyers will remain on the sidelines until mortgage rates or broader economic concerns provide more clarity.
Meanwhile, the Downtown Brooklyn Partnership’s latest quarterly report revealed a record-breaking 3,700-plus new housing units were completed there in the first half of 2025. This influx of new homes, including over 1,000 affordable units, is a sign that while existing listings may be scarce, new construction is helping to meet some of the city’s housing demand.
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