Manhattan Real Estate Market Report – Q2 2025
As we close out the second quarter of 2025, Manhattan’s residential market continues to prove its strength and stability—especially in the luxury and ultra-luxury segments. From April through June, the borough saw a balanced mix of growth, recalibration, and renewed confidence.
Sales Are Climbing
Total closed sales reached 2,706 in Q2, up 14.5% from Q1 and 5.2% year-over-year—marking a strong continuation of the city’s post-pandemic rebound. With a total sales volume of nearly $5.8 billion, the average sales price landed at $2.15M, while the median price ticked up to $1.21M.
Buyers remain active despite macroeconomic uncertainty and elevated interest rates, particularly those with liquidity and long-term investment horizons.
Ultra-Luxury Is Booming
One of the biggest stories this quarter is the surge in ultra-luxury deals. Sales in the $10M+ category jumped a staggering 66.7% year-over-year, driven by cash-ready buyers relocating from California and Florida. This group is seeking premium properties with world-class amenities, showing little hesitation despite interest rates—proof that generational wealth and lifestyle-driven decisions are fueling the top of the market.
Condos Outperform, Co-ops Lag Behind
Condos led the charge this quarter with 1,285 recorded sales—up 13.7% year-over-year and 20.5% over Q1. Buyers continue to favor condos for their flexibility, rental potential, and streamlined ownership process. New development sales remain especially hot, signaling demand for turnkey, amenity-rich living.
Co-ops, on the other hand, saw a modest 1.5% decline in sales from this time last year. While median co-op prices held steady, a lack of new listings and tighter subletting restrictions continue to hold this segment back. Contract activity for co-ops was also down 15.3% YoY.
Buyers Are Still Active—But Selective
Overall contract activity dipped 4.9% compared to Q2 2024, but the $3–$5M price range defied the trend, with contracts up 18.4%. These buyers—often upsizing families or next-gen wealth—are making decisive moves on well-located, larger properties.
Still, some buyers are taking a wait-and-see approach. While inventory rose 4.4% YoY to just under 6,700 listings, new listings actually fell 14.1%. Many homeowners remain hesitant to sell, locked into pre-rate-hike mortgages.
Submarket Highlights
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Downtown led the borough in sales volume, accounting for 27.5% of all deals with 11.2% growth YoY.
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Upper West Side posted a strong 7.9% increase in sales, thanks to a surge in condo transactions and a 22.3% increase in contract activity.
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Upper East Side saw a 44.8% increase in condo sales and had the highest average condo price per square foot at $1,650.
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Midtown West experienced the most inventory growth (+23.6%), and strong pricing helped drive performance despite slight contract softness.
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FiDi/Battery Park saw a mixed quarter—condo sales were stable, but co-op activity dropped sharply YoY.
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Upper Manhattan continued to offer value opportunities, with contract prices and volume trending upward even as average prices dipped slightly.
Townhouses and Larger Units Hold Appeal
Though not explicitly broken out in the main figures, homes with three or more bedrooms across all product types saw notable pricing strength. Families and remote workers are still showing strong interest in spacious layouts and private amenities, pushing demand for townhouses and larger condos higher.
The Takeaway
Manhattan’s market remained impressively resilient through Q2, powered by luxury buyers, long-term investors, and limited inventory. With pricing holding firm and demand for well-located, move-in-ready homes remaining strong, we expect continued momentum into the second half of the year.
As policy shifts, geopolitical headlines, and New York’s mayoral race continue to unfold, buyers and sellers alike are staying attuned—but the fundamentals of Manhattan real estate remain as strong as ever.
Whether you're looking to buy, sell, or invest, Manhattan’s market is evolving—but its global appeal hasn’t wavered.