Real Estate Insights

National Report | January 2026

With Sales Data through December​​​​

In 2025, U.S. real estate markets faced significant headwinds as political and economic volatility surged in early spring, dampening momentum across much of the country. By mid to late summer, however, stock markets rebounded to reach new highs, and interest rates began a sustained decline. This shift helped improve buyer and seller confidence, a change that is now beginning to be reflected in market data. Overall, higher-priced markets performed more favorably, supported by affluent buyers benefiting from substantial gains in household wealth driven by strong equity markets. In contrast, more affordable markets were more heavily affected by ongoing concerns surrounding inflation, affordability, and employment.

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As 2026 begins, interest rates are near multi-year lows and equity markets are at or close to record highs. Historically, the early months of the year see buyers re-enter the market more quickly than sellers bring new listings online, creating a demand-supply imbalance that typically intensifies through the spring. This pattern was disrupted last year by the tariff shock, but absent new or unexpected economic disruptions, a stronger and more competitive spring market is anticipated.

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This report primarily examines annual trends in home prices and key market indicators, while also evaluating macroeconomic factors that continue to influence real estate conditions.

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As noted by National Association of Realtors Chief Economist Lawrence Yun on January 14, 2026:
“2025 was another challenging year for homebuyers, characterized by record-high home prices and historically low sales activity. However, conditions began to improve in the fourth quarter, driven by declining mortgage rates and slower price growth. Seasonally adjusted December home sales were the strongest in nearly three years, with gains observed across all four major regions.”

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Manhattan Residential Market Report | Q4 2025​​

The Manhattan residential market remained resilient in the fourth quarter of 2025, recording 2,611 sales—an 8.6% year-over-year increase and a notable improvement over both 2024 and 2023, despite mixed performance across property types. While local elections and shifting federal economic conditions briefly slowed activity, buyer and seller confidence returned later in the year, driving a strong finish. Both condos and co-ops contributed evenly to quarterly gains, with closings rising 8.4% and 8.7%, respectively. Pricing remained firm, as condominium average prices reached a record $3.03 million, and co-ops achieved their second-highest fourth-quarter pricing on record. Although the spring market showed signs of softness, renewed momentum in the latter half of the year exceeded expectations, underscoring sustained demand as 2025 closed on a positive note.

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Buyer demand continued to vary significantly by location, creating distinct pockets of strength and weakness across Manhattan. Downtown neighborhoods—including SoHo, Tribeca, Chinatown, and Little Italy—experienced the greatest divergence, with condo sales declining more than 15% while co-op closings surged nearly 23%. Conversely, value-driven condo buyers gravitated toward Lower Manhattan, particularly the Financial District and Battery Park City, where sales jumped 77.3% year-over-year. Midtown East also emerged as a condo standout, capturing the third-largest market share and posting its highest median price in a decade, supported by its central location and relative value.

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The ultra-luxury segment demonstrated notable resilience, especially among condominiums priced above $20 million, which saw a 12.5% increase in contract activity. This strength was driven by high-net-worth buyers acquiring trophy assets and capitalizing on pricing opportunities. The $3 million to $5 million range proved to be the market’s “sweet spot” across both property types, recording double-digit contract growth and highlighting the continued insulation of cash-rich buyers from broader economic pressures.

Active inventory remained essentially flat at just under 5,400 listings. Condominium inventory rose 6.3%, offering buyers increased leverage and contributing to a modest decline in price per square foot, while co-op inventory tightened by 6.8%, sustaining competitive conditions. New listings declined 4.1%, signaling ongoing seller caution.

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Looking ahead, Manhattan’s residential market is expected to remain steady, with healthy competition on both sides. While limited supply continues to challenge buyers, demand for well-positioned properties shows no signs of slowing. Market conditions and evolving buyer expectations are likely to encourage sellers—particularly in the co-op segment—to align more closely with the market through pricing strategies or targeted renovations. Overall, Manhattan remains a stable and highly active market, well-positioned for continued strength in the year ahead.

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Manhattan Residential Market Report | December 2025​​​

Manhattan’s December market reflected a seasonal slowdown in headline pricing, paired with improving efficiency and steady demand. The average sale price declined 5.0% month-over-month and 4.4% year-over-year, and average price per square foot fell 3.0% month-over-month, indicating continued buyer sensitivity at higher price points. In contrast, the median sale price rose 8.6% year-over-year, suggesting sustained strength in the core market where most activity is concentrated.

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Market pace improved meaningfully, with average days on market dropping to 107, down 3.6% from November and 6.1% from last year, reflecting more decisive buyer behavior for correctly priced homes. Inventory fell sharply to 5,616 units, a 10.3% monthly decline, tightening supply and limiting buyer choice as the year closed.

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Demand remained resilient despite fewer listings. Contracts signed increased 1.3% month-over-month and 5.9% year-over-year, underscoring continued absorption and pointing to stable momentum entering 2026. Overall, the data suggests a market that is becoming more balanced: price-sensitive at the top, competitive in the middle, and increasingly driven by realistic pricing and limited inventory rather than broad-based appreciation.

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Please be aware that reports provide broad generalizations summarizing conditions and trends across numerous local markets. While the data is sourced from reputable institutions, there may be occasional inaccuracies. National reports represent a generalized view of values, conditions, and trends across diverse markets, and data from reliable sources may contain errors and are subject to revision. Additionally, figures from previous periods may be labeled as preliminary. All numerical data should be considered approximate.