The one-two punch of rising prices and mortgage rates have so far stifled what some predicted to be a frenzied 2025 homebuying season. The lack of properties available for sale in certain regions of the United States has also hampered home sales, housing economists and real estate agents have said. Those trends are also impacting homebuying activity across New York state.
Homes.com asked real estate agents in the Empire State to dish about what's happening in their markets related to mortgage rates, median home prices, inventory and more. Their answers reveal that New York homebuyers are becoming more cost-conscious while sellers are thinking carefully about how to price their properties.
Below is an edited version of responses from the agents.
How have today’s elevated mortgage rates changed what buyers are doing these days?
Cassie Haller, an agent in Rochester with Keller Williams Realty: "Homebuyers are absolutely factoring interest rates into their decision-making, but it’s no longer about sticker shock — it’s about monthly affordability. Rates have come down slightly from last year’s peak, but they’re still high compared to what buyers were conditioned to expect just a few years ago. What we’re seeing now is a more strategic, calculated buyer. They’re budgeting more cautiously, running payment scenarios before touring homes, and asking their lenders to rework numbers every time a rate changes by even 0.25%. It’s not stopping buyers from entering the market, but it is shifting how they approach their search."
Ron Garafalo, an agent with John J. Lease in Middletown: "Elevated mortgage rates are a big reason for sales to be down, but there are others. The price of homes has continued to go up, and a percentage of buyers are no longer able to buy due to the elevated prices, or do not want to."
Dan Staley, an agent at Staley Real Estate in Rhinebeck: "High rates are definitely slowing things down, but they’re not the only factor. In the Hudson Valley, prices are still relatively high, and buyers are feeling the squeeze from rising costs across the board — taxes, utilities, insurance and the general cost of living. There’s also some hesitation from buyers who are unsure about making a big financial move right now."
Are sellers concerned their home won’t sell because people can’t swing the mortgage?
Kirsten Jordan, a New York City agent for Corcoran: "In affluent suburbs like Westchester, there are few concerns about not being able to sell due to affordability challenges because there is more demand than supply. Unless a home is in major disrepair, selling should not be a concern."
Haller: "Some are, and honestly — it’s not an unfounded concern. Sellers are hearing national headlines and assuming the worst, but in reality, homes that are priced and positioned strategically are still selling, and often quickly. The key is educating sellers on today’s buyer psychology. In Rochester, homes that are move-in ready, in desirable areas, and priced correctly are still receiving strong interest. But sellers need to understand that buyers are stretching financially — and if a home is overpriced or lacks value in the buyer’s eyes, it will sit."
Describe the overall status of your region’s housing market.
Jordan: "With the current political climate in New York City, I expect another rush to the suburbs. Buyers who are skittish about city home values are looking for stability and quality of life in places like Rye. This will keep demand and prices high for the foreseeable future."
Haller: "The Rochester housing market is in a transitional — but still active — phase. We are seeing more inventory, but demand hasn’t gone away. In fact, well-positioned homes are still receiving multiple offers, especially under $400,000."
Jacqlene Rose, an agent with Coldwell Banker Timberland Properties: "My market is in the Catskill Region, which has a huge second home market with people leaving the city on weekends or moving here in retirement. Due to low inventory, we have had multiple offers on numerous properties escalating the purchase price above asking. It’s difficult to meet the demand for housing."
Garafalo: "The competitiveness of the market has slowed down, but it's still a factor. In my area, Orange County, where the average price is in the mid to high $400's, we saw homes get 10-plus offers within a week of listing. That was one to three years ago. It was not unusual for buyers to offer $30,000 to $60,000 above the list price and waive inspections or appraisal gaps. Currently, homes are staying on the market a little longer, and may get several offers, but closer to the list price or slightly higher. Most buyers are having home inspections done and not waiving appraisal gaps."