As we turn the page on the first quarter of 2025, Manhattan’s real estate market is showing strong signs of resilience and renewed confidence—particularly in the luxury and ultra-luxury sectors. Here’s a look at what happened across the borough from January through March.
Market Momentum Is Back
Sales were up 13.2% year-over-year, totaling 2,363 recorded closings, with an average sales price of $2.24M. While economic uncertainty continues to be a backdrop, buyers are showing confidence in real estate as a stable, long-term investment—especially as more people return to the city and office life resumes.
Luxury Is Leading the Charge
If there’s one standout segment this quarter, it’s the luxury market. Properties priced at $5M and above saw an incredible 49.2% increase in sales, and the $20M+ market had its best quarter since 2019. High-net-worth individuals are clearly back in the game, driving up prices and activity at the top.
Co-ops and Condos: A Mixed Bag
- Condos saw strong gains with sales up 25.9% YoY, and the average price climbing to $3.07M.
- Co-ops had a more modest 4.5% increase in sales, but average prices jumped 18% YoY to $1.55M, marking the highest median co-op price in the last 10 years.
That said, signed contracts for co-ops dropped 18.5%, largely due to inventory shortages, showing there’s still room for supply to catch up to demand.
Submarket Spotlight
- Upper West Side was the breakout star, with a 25.3% increase in sales, fueled by new developments and proximity to Midtown offices.
- Downtown remained the borough’s most active area, accounting for 26.5% of all sales.
- Upper East Side saw a 16.9% jump in co-op sales and held the highest condo average PPSF at $1,654.
Townhouse Market Shows Signs of Life
The townhouse market also posted a healthy 30% YoY sales increase, with a median price of $8.03M and average PPSF up 4.8%. While contract activity was slightly down, this segment continues to benefit from limited supply and high demand for privacy and space.
Buyer Behavior & Price Sensitivity
Buyers are still transacting despite interest rates hovering between 6–7%. The $500K–$1M range remained the most common transaction zone, while the $1–$3M segment saw a dip in contracts signed, reflecting some caution in the middle market.
Inventory on the Rise
Overall inventory rose 3.4% YoY, a positive shift after years of tight supply. However, the $10–$20M segment saw a 10.9% drop in active listings, likely due to increased luxury demand earlier this year.
The Takeaway
The Manhattan market kicked off 2025 with strength and clarity. Buyers—especially in the high-end segment—are moving decisively. Inventory is improving, prices are climbing steadily, and submarkets like the Upper West Side and Downtown are driving demand.
As we head into Q2, all signs point to a city that’s not just back, but evolving. Whether you’re buying, selling, or investing, Manhattan real estate continues to prove why it remains one of the world’s most desirable markets.