Weekly Manhattan and Brooklyn Market Update: 1/5
January 5, 2026
January 5, 2026
The first week of January reflected a continuation of the year-end reset rather than a full market restart. While the calendar has turned, buyer and seller behavior remains influenced by lingering holiday effects, travel schedules, and delayed deal execution. Activity metrics softened modestly week-over-week, but inventory contraction accelerated, laying the groundwork for a firmer reactivation later in January.
The Howard Hanna NYC Consumer Sentiment Index remains under pressure, declining further from –18% to –33%. This deeper pullback reflects short-term hesitation tied to the post-holiday transition rather than a deterioration in underlying demand. Historically, early-January sentiment troughs often precede a rebound in activity as buyers and sellers fully re-enter the market later in the month.
Outlook: The first week of January confirms the market remains in reset mode rather than retreat. Inventory compression is intensifying, sentiment is temporarily subdued, and demand is largely deferred, not lost. As participants fully re-enter the market, conditions are expected to firm and become more competitive later this month. With inventory at multi-week lows, pricing leverage continues to favor well-prepared sellers, particularly in supply-constrained segments.
Manhattan’s active inventory declined for the seventh consecutive week, falling to 4,922 homes (–3.6% WoW, –5.9% YoY). New listings dropped further to just 38 units (–10% WoW, –49% YoY), reinforcing the severity of the seasonal supply pause and signaling limited near-term relief on inventory.
Brooklyn inventory decreased to 2,874 homes (–3.3% WoW, +2.9% YoY), marking the ninth straight weekly decline. New listings totaled 49 units (–2% WoW, –40% YoY), confirming that most sellers remain sidelined entering the new year.
Manhattan Pending Sales: Declined 2.6% WoW to 3,091 units
Brooklyn Pending Sales: Declined 5.2% WoW to 1,836 units
These modest pullbacks are consistent with delayed post-holiday execution and do not yet indicate a breakdown in buyer pipelines.
Photo by Rihards Gederts | Howard Hanna NYC
Manhattan recorded 108 signed contracts (–22% WoW, +2% YoY). The Manhattan Consumer Sentiment Index declined from –27% to –46%, a move that aligns closely with post-holiday and early-January patterns observed in prior years.
Brooklyn logged 73 signed contracts (–20% WoW, –16% YoY). The Brooklyn Sentiment Index eased from +18% to +1%, signaling a neutral but stable start to 2026. While slightly weaker than the opening week of 2025, Brooklyn continues to benefit from relative affordability and consistent buyer interest.
Marketproof tracked 14 new development contracts across 10 buildings. Top performers included:
One Wall Street (Financial District) signed 3 deals
The Hailer (Greenpoint) signed 2 deals.
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.
Her experience, expertise, and engaging personality make Sonal the perfect combination of advisor, advocate, and strategist. She is the proud owner of several NYC properties and a skilled negotiator with a deep understanding of people and sharp instincts about market trends.
