Real Estate Insights

Manhattan Residential Market Report | January 2026​​​

The market continues to show price strength despite softer activity levels.

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Pricing trends remain positive.
The average sale price rose to $2.39M, up 8.0% from December 2025 and 11.1% year-over-year, signaling sustained demand at higher price points. The median sale price increased even more sharply to $1.35M, reflecting a 13.0% month-over-month gain and a 10.2% annual increase, suggesting broad-based appreciation across the market. Price per square foot also climbed to $1,570, up 4.2% month-over-month and 6.2% year-over-year.

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Market pace is improving slightly.
Average days on market edged down to 105 days, improving from both December and last year, indicating homes are selling marginally faster.

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Inventory is tightening.
Active listings declined to 5,575, down 0.7% from December and 3.8% year-over-year, which continues to support pricing.

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Transaction volume softened.
While prices are rising, contracts signed fell to 648, down 13.8% month-over-month and 5.8% year-over-year. Closed sales also dipped 6.8% from December, though they remain 6.3% higher than January 2025, showing longer-term stability.

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Negotiability remains steady.
The average discount held at 7%, unchanged month-over-month and year-over-year, indicating consistent buyer–seller expectations.

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Bottom line:
The market is characterized by higher prices, limited inventory, and slightly slower deal volume, pointing to a resilient but selective environment where well-priced homes continue to perform.

 

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 Ultra-Luxury Market Report | 2025

New York City continues to attract renewed interest from both domestic and international buyers, driven by factors that extend well beyond traditional market fundamentals. At the ultra-luxury level, ownership is increasingly viewed as a long-term, emotional investment—an opportunity to secure a lasting stake in the city itself. Developers are responding with once-in-a-generation residences such as 80 Clarkson, 140 Jane, 125 Perry, and the Flatiron Building, many of which are achieving record-setting pricing. Despite political shifts, market volatility, and broader global uncertainty, New York City remains one of the most resilient and enduring luxury assets in the world.

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The 2025 market underscored a clear trend within Manhattan’s $10 million-plus segment: when a property is truly best-in-class and introduced with disciplined, thoughtful positioning, buyers respond decisively. While local political developments contributed to a brief slowdown in the third quarter following a strong first half, activity rebounded toward year-end and is carrying momentum into 2026. Demand has been especially strong among domestic buyers seeking top-tier product across luxury condominiums, prime prewar cooperatives, and trophy townhouses—reflecting sustained confidence in the long-term strength of the city’s real estate market.

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Throughout 2025, the ultra-luxury sector also navigated heightened geopolitical uncertainty alongside an increase in tax-motivated sellers. Even so, transactions above $10 million accelerated, particularly in the latter half of the year, as ultra-high-net-worth buyers continued to view trophy properties in iconic, collector-grade buildings as strategic acquisitions. For these buyers, value extends beyond square footage to include privacy, security, wealth preservation, and exceptional amenities—factors that drove standout performance in both premier resales and top-tier new developments.

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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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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.