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rokers are predicting a shift in the New York market, but not necessarily a dramatic one. After a sluggish few years, interest has picked up, with many brokers reporting a surge in activity since Thanksgiving. Deborah Rieders of Corcoran says her phone has been ringing nonstop, while Abigail Palanca of Serhant had nine packed open houses in Brooklyn last weekend.

    The sudden increase in interest has raised hopes for 2025, but it's not all good news for buyers. Bess Freedman, CEO of Brown Harris Stevens, notes that high interest rates, inflation, and low inventory have made sellers hesitant to list their properties. However, brokers believe that the market is adjusting, with fewer holdouts waiting for interest rates to drop.

    As a result, more movement in the market is expected, which could lead to an increase in inventory. This might be good news for buyers who can't afford all-cash deals, as co-ops may become more appealing due to their relatively lower prices and better financing options. In fact, some brokers report that co-ops are already popular with first-time buyers looking to spend less than a million dollars.

    The high-end market is also expected to remain strong, with many all-cash buyers driving deals in Manhattan. Scott Harris of Brown Harris Stevens notes that sellers who can afford to take a loss on their properties are willing to move forward, even if it means selling for less than they paid.

    Buyers, on the other hand, are thrilled about the current market conditions. Harris is representing clients who have just gotten board approval for an offer in the low $3 millions for a Central Park West co-op that's fully renovated. However, deals can be problematic due to issues like minor things holding up sales or buyers trying to negotiate.

    Experts believe that the lack of affordable inventory may help revive interest in co-ops. StreetEasy senior economist Kenny Lee notes that co-ops are a better deal than condos on a cost-per-square-foot basis and presents an opportunity for buyers who need a mortgage. Kunal Khemlani, an agent at Corcoran, says co-ops are already popular with many of his clients, particularly first-time buyers looking to spend less than a million dollars.

    The demand is there, but the buyers and sellers aren't quite in sync yet. February and August were the busiest months of the year, indicating that buyers are waiting for interest rates to drop modestly. However, no one expects a big drop anymore, just modest dips. This has led brokers to believe that people have made peace with the fact that there might not be rate cuts for now.

    It's not all about interest rates, though. Low inventory was just as much of a problem, and people are willing to stomach high interest rates if they can find an apartment they like. There are indications that inventory may improve too, as people get to a point where they need to move due to various life changes or financial constraints.

    Based on the last few months, everyone is optimistic that in this new reality of high-ish rates and a second Trump presidency, the cautious approach will fade away, ushering us into a more normal market. A market where people aren't hunkering down in less-than-ideal places because they have a 3 percent rate or waiting for rates to fall to 3 percent again before they put in an offer.