If you’ve been following the headlines, you already know that interest rates have been making waves across the national housing market. But New York City rarely follows the same script as everyone else and in our experience at Alta Real Estate, this moment is more nuanced than most headlines suggest.
Over the past year, buyers and sellers alike have been recalibrating their expectations. Some are pressing pause. Others are getting more strategic. And still, many are moving forward albeit with eyes wide open.
Conversations Have Shifted
What’s changed most isn’t just the numbers it’s the psychology. Our agents are having different conversations than they were a year ago. Buyers are more cautious, yes, but also more informed. They’re thinking in terms of long-term value instead of chasing the lowest monthly payment. In that sense, rising interest rates haven’t cooled the market so much as they've matured it.
Motivated Sellers Are Meeting the Moment
Interestingly, we’re seeing sellers who might have held out during peak pandemic pricing now returning with a more realistic outlook. For serious sellers, this moment can be an advantage especially with well-priced, well-presented listings. Inventory remains relatively tight in key Manhattan and Brooklyn neighborhoods, so even with higher borrowing costs, quality homes are still drawing attention.
Our team at Alta Real Estate has guided multiple clients through negotiations this year where creative deal structures rate buydowns, credits at closing, or flexible timing helped make deals work for both sides. The will to transact is still very much alive; it just looks a little different.
The All-Cash Effect
It’s also worth noting the role of all-cash buyers in today’s market. In NYC, they’ve always played a sizable role but now, they’re even more pronounced. With interest rates rising, buyers who aren’t as rate-sensitive are moving with greater confidence. At Alta Real Estate, we’ve helped several of these clients capitalize on a moment when they face less competition from heavily leveraged buyers.
Perspective Matters More Than Rates
We’ve been through many market cycles. What always strikes us is how much perspective shapes opportunity. Yes, higher rates impact affordability. But we’re also seeing buyers focus less on chasing “perfect timing” and more on buying the right apartment for the next 5 to 10 years. The reality is, rates can change but location, light, layout, and long-term equity tend to matter more in the end.
Looking Ahead
There’s no one-size-fits-all answer in this market and that’s where experience becomes essential. Our agents at Alta Real Estate aren’t just reading charts; we’re walking listings daily, fielding real-time feedback from buyers and sellers, and seeing firsthand how deals are actually happening.
If you’re wondering whether now is the right time to buy or sell, you’re not alone. The answer depends on your specific goals and we’re here to help you navigate that decision with clarity, not pressure.
Because in a city as layered and resilient as New York, there’s always more to the story than just interest rates.
