New York Housing Market: Prices Are Still High, but Buyers Are More Selective

New York’s housing market in February 2026 was still firm, but it was not an easy seller’s market. Home prices remained high and inventory stayed tight, yet buyers were less willing than a year ago to stretch for every listing. Sellers can still do well, but broad pricing power is weaker: well-priced homes are finding buyers, while overpriced homes are more likely to sit.

The median home price rose 3% to $885,000 in February 2026, and homes still sold for about 98% of asking on average. But the share of homes selling above list slipped to 13% from 15%, showing prices are holding up even as bidding pressure eases.

Sellers pushed asking prices higher, with the median listing price up 4% to about $937,000 and list price per square foot up about 5% to $732. That shows confidence at launch, but not necessarily stronger leverage once buyers decide what they will actually pay.

Inventory stayed tight, but demand softened too. Active listings fell 8% to about 13,300 homes and new listings dropped 19% to about 3,300, yet pending sales fell 11% and closed sales fell 8%, so fewer choices did not translate into a hotter market.

Homes took longer to sell, with median days on market rising to 72 from 68 a year earlier. The share of listings going off market within two weeks also fell to 9% from 13%, giving buyers a bit more breathing room and reinforcing that urgency has cooled.

Price cuts held at 16% of listings, unchanged from February 2025. That points to a market that is not broadly weakening, but one where sellers who overshoot are still being pushed to adjust.

Pricing power did not improve from January to February. Homes sold for about 98% of list price in both months, so the market held steady rather than shifting back toward stronger seller control.

Sellers raised asking prices heading into February. The median listing price climbed from about $889,000 in January to about $937,000 in February, and list price per square foot rose nearly 6%, but buyers did not become more aggressive just because sellers asked for more.

Pending sales increased from about 2,193 in January to 2,294 in February, suggesting some normal seasonal pickup. Still, closed sales fell from 2,493 to 2,076, so the broader market remained slower rather than clearly stronger.

Homes took longer to move, with median days on market rising from 66 to 72, while the share going off market within two weeks stayed at 9%. That supports the same core story: buyers are active, but selective.

The share of listings with price cuts eased from 20% in January to 16% in February. That is a stabilizing sign, but not enough on its own to outweigh slower sales and longer marketing times.

Be selective, but be ready to act on the right home. In New York, buyers have more room to negotiate than they did a year ago, especially on listings that look aggressively priced or have been sitting. Sellers are still aiming high, and not every asking price is being validated.

Move quickly when a home is clearly well-priced and well-positioned. Inventory is still limited, and some homes are still drawing enough interest to sell above list. The best opportunities are not lasting forever, but the broader market gives you more reason to compare value carefully before overbidding.

Price for the market you have now, not the one sellers had a year ago. New York home prices are still high, but buyers are not giving every listing the benefit of the doubt. If you launch too high, the market is more likely to stall your listing than lift it.

Watch early response closely. If showings and interest are weak, adjust quickly before the listing goes stale. Tight supply still helps sellers, but the advantage is selective now: homes that feel like clear value can still move well, while wishful pricing is more likely to lead to a slower sale or a price cut.

The most important signal in the next monthly update is pending sales. New York’s market is still being supported by limited supply and high home prices, but the real question is whether buyer demand starts to strengthen enough to support those prices more broadly.

If pending sales improve meaningfully, sellers may regain firmer leverage. If not, this remains a high-priced but selective market where pricing discipline matters more than scarcity alone.