July 2026 NYC Real Estate Market Update: Manhattan and Brooklyn

July brought a mixed but resilient housing market across Manhattan and Brooklyn. Closed sales increased in both boroughs, while inventory remained significantly lower than one year ago. At the same time, contract activity slowed from June, reflecting a more measured pace heading into late summer.

Although Manhattan continued to command substantially higher prices, Brooklyn showed stronger year-over-year contract activity, a rising median sale price and shorter marketing times.

The NYC Market at a Glance

Across both boroughs, closed sales increased by approximately 3% compared with July 2025. Inventory, however, declined by 19.1% in Manhattan and 11.3% in Brooklyn. Contract activity moved in different directions: Manhattan contracts fell 6.8% year over year, while Brooklyn contracts increased 4.1%.

Manhattan: Higher Prices Despite Slower Contract Activity

Manhattan’s average sale price reached $2.26 million in July, an increase of 11.7% from one year ago. The median sale price was comparatively stable at $1.285 million, up just 0.8% year over year. The difference between the average and median suggests that a greater concentration of high-priced closings influenced the month’s overall average.

The average price per square foot rose 4.2% to $1,553, while closed sales increased 3% to 1,247 transactions. Properties spent an average of 103 days on the market, nearly unchanged from July 2025.

Inventory presented one of the most notable shifts. Manhattan had 5,714 active listings during July, down 19.1% from last year and 15.1% from June. Buyers had fewer choices, but the average sale still occurred at a 6% discount from the original asking price.

Contract activity was softer, with 926 contracts signed—down 6.8% annually and 15.9% from June. This indicates that while July closings remained healthy, the pipeline of future transactions slowed during the month.

Brooklyn: A Rising Median and Faster Sales

Brooklyn’s average sale price was $1.48 million, down slightly by 0.8% from July 2025. However, the median price rose 9.5% to $1.205 million, bringing it surprisingly close to Manhattan’s $1.285 million median.

The borough recorded 838 sales, an increase of 3.3% year over year. Contracts signed also increased 4.1% annually, despite declining 11.9% from June.

Brooklyn properties moved more quickly than their Manhattan counterparts, spending an average of 82 days on the market. The typical discount was also smaller at 3%, compared with 6% in Manhattan. Together, those figures point to firmer competition for well-priced Brooklyn properties.

Inventory declined to 3,233 listings, 11.3% below last July. Unlike Manhattan, where inventory fell sharply from June, Brooklyn’s supply decreased by a more modest 1.6% month over month.

The Condo Market

Manhattan condos recorded an average sale price of $2.93 million, up 12.6% year over year. The median increased 7.4% to $1.83 million, while the average price per square foot reached $1,784.

Condo closings were particularly strong in Manhattan, rising 10.7% from July 2025. Inventory declined 19.1%, although contracts signed were down 7.1%. Condos entering contract during the month had spent an average of 102 days on the market, down from 111 days last July.

Brooklyn condos had an average sale price of $1.51 million, up 4.4% annually. The median climbed more significantly, increasing 13.3% to $1.25 million. Contracts signed rose 8%, and closed sales increased 4.8%.

Brooklyn condo inventory declined 9.1% year over year, while the average price per square foot increased slightly to $1,293. The combination of higher median pricing, more contracts and reduced inventory made condos one of Brooklyn’s stronger market segments in July.

Co-ops Presented More Mixed Results

Manhattan co-ops recorded an average sale price of $1.42 million and a median of $895,000, representing annual declines of 1.9% and 0.6%, respectively. However, the average price per square foot increased 8.4% to $1,178.

Co-op inventory fell nearly 20% from last year, but contracts and sales both declined. The average marketing time increased to 102 days.

Brooklyn co-ops had an average sale price of $805,487, down 1.5% annually, while the median declined 10% to $520,000. Contracts increased 4.2%, but closed sales fell 4.9%. Brooklyn co-ops spent an average of 80 days on the market and sold at an average discount of just 1%.

Manhattan Townhouses and Brooklyn Houses

Manhattan’s townhouse market produced dramatic pricing figures in July. The average sale price reached $12.88 million, up 59.8% year over year, while the median rose 23.2% to approximately $9.86 million. Because only 16 townhouse sales were recorded, individual high-value transactions can have an outsized effect on monthly averages.

The average townhouse spent 162 days on the market and sold at a 16% discount from its original asking price. Inventory declined 13.1% year over year.

Brooklyn’s broader house category recorded an average sale price of $1.78 million and a median of $1.425 million. Both were slightly below last year, but sales increased 6.5% and the average marketing period declined from 85 to 75 days. Inventory fell 15.5%, while houses sold at an average discount of 6%.

What This Means for Buyers and Sellers

For buyers, reduced inventory means preparation remains important, particularly in Brooklyn, where properties sold more quickly and with smaller discounts. Manhattan buyers may have somewhat more negotiating room, especially when considering listings that have remained on the market beyond the borough’s 103-day average.

For sellers, July’s results reinforce the importance of pricing correctly from the beginning. Limited inventory can support property values, but buyers are still distinguishing carefully between accurately priced homes and aspirational listings. Manhattan’s 6% average discount—along with the 16% discount in the townhouse segment—shows that scarcity alone does not guarantee a full-price sale.

Looking Ahead

The July market was defined by fewer available homes, continued closing activity and a month-over-month slowdown in new contracts. Brooklyn showed stronger forward momentum, with contracts rising annually and the median price increasing nearly 10%. Manhattan remained the higher-priced market and benefited from strength at the luxury end, but contract activity was more restrained.

As the market approaches the fall listing season, the next major question will be whether new inventory returns—and whether buyer demand is strong enough to absorb it.