T
he New York Housing Market Report for May 2025 reveals a mixed bag of news. While inventory is finally growing, actual home sales took a noticeable dip in May, suggesting a period of adjustment after years of tight markets. The number of homes for sale increased by 3.6 percent statewide, from 27,806 houses in May 2024 to 28,810 available last month.

    Closed home sales in New York fell by 10.9 percent compared to last year, with 7,846 homes sold in May 2025, down from 8,807 in May 2024. This significant drop is likely due to buyers becoming more cautious, holding out for lower interest rates or price drops that haven't materialized.

    Despite the sales slowdown, median sales prices continued their upward climb, rising by 3.8 percent in May to $436,000. This trend suggests strong underlying demand and inflationary pressures driving prices higher. Mortgage rates also saw a slight drop, averaging 6.82 percent for a 30-year fixed-rate mortgage.

    The statewide inventory increase is a positive trend, but it's playing out differently across counties. Some areas, like Chemung and St. Lawrence, have seen significant growth in available homes, while others, such as Broome and Richmond, have fewer homes on the market.

    New York's housing market is vast and varied, with different trends emerging in different regions. A balanced market is typically considered to be 5-6 months of inventory, but New York's overall months supply rose to 3.3 months from 3.1 months last year, indicating a seller's market that's inching closer to balance.

    The ongoing battle for affordability remains the biggest challenge in the New York housing market. Prices are high, and mortgage rates are still historically elevated compared to the last decade. This creates a challenging environment for many potential buyers, especially first-timers.

    While sales are down and inventory is up, key indicators like median sales price rising, days on market being low, and the percentage of list price received indicating sellers get more than asking, all point to a market that still favors sellers. However, the trend is leaning towards more balance, and if inventory continues to grow at this pace and sales continue to dip, we could see some local markets shift towards a buyer's advantage within the next 6-12 months.

    Interest rates, job market growth, new construction, and migration patterns will be closely watched in the coming months. The New York housing market is maturing and becoming more normal after a period of extreme hyperactivity. Real estate is entering a more balanced phase, creating unique buying opportunities for smart investors.