Manhattan and Brooklyn Real Estate Market Report: Q2 2026

The Manhattan and Brooklyn residential markets remained resilient throughout the second quarter of 2026. Despite elevated mortgage rates, ongoing economic uncertainty, and limited inventory, buyers remained active across both boroughs. Contract activity increased, prices continued to appreciate in many segments, and luxury properties delivered some of the quarter’s strongest results.

While closings were modestly lower than a year ago—down 3.5% in Manhattan and 4.4% in Brooklyn—rising contract activity suggests that buyer demand continued to build heading into the second half of the year.

Manhattan: Higher Prices Amid Limited Supply

Manhattan recorded 2,696 sales in the second quarter, an increase of 18.3% from Q1 but a 3.5% decline from the same period last year. Total sales volume reached nearly $6 billion, slightly exceeding Q2 2025.

The borough-wide median sales price rose 6.3% year over year to $1.275 million, while the average price increased 4.5% to approximately $2.21 million. The average price per square foot reached $1,540.

Both condos and co-ops experienced price appreciation. The median Manhattan condo price increased 5.2% to approximately $1.79 million, while the median co-op price rose 5.9% to $900,000.

Although completed sales were slightly lower, contract activity provided a more encouraging view of the market. Manhattan recorded 2,994 signed contracts, up 3% year over year and more than 50% from the first quarter. Condo contracts increased 7.5%, demonstrating that buyers continued to move forward when the right properties became available.

Brooklyn: Condos and Luxury Properties Led the Market

Brooklyn’s median sales price reached $1.075 million in Q2, while the average price rose to approximately $1.43 million. Although the total number of sales declined 4.4% year over year, total dollar volume increased 3.4%, reflecting greater activity at higher price points.

Condos were the clearest driver of the Brooklyn market. Condo closings increased 7.2% year over year, while the median condo price rose 14.1% to $1,220,950. The average condo price increased 8.6% to approximately $1.47 million.

Contract activity was also strong. Overall Brooklyn contracts rose 5.1% from Q2 2025 and 41.6% from the first quarter. Condo contracts increased 11%, while house contracts rose 2.8%.

The increase in pending activity indicates that buyers remained engaged despite affordability concerns and limited choices.

Luxury Demand Remained a Major Market Driver

The luxury segment outperformed in both boroughs.

In Manhattan, contracts for properties priced between $10 million and $20 million rose 38.6%, while contracts above $20 million increased 25%. Luxury condo activity was especially strong, with contracts in the $10 million to $20 million range increasing 54.5% and contracts above $20 million rising 33.3%.

Brooklyn experienced similar momentum at its own luxury price points. Closings above $3 million increased 32.1% year over year, while sales between $2 million and $3 million rose 8.9%.

The strength at the high end reflects continued demand for distinctive, well-located and thoughtfully renovated residences. Affluent buyers have generally been less affected by mortgage-rate fluctuations, allowing the luxury market to remain active even as other parts of the market faced affordability pressures.

Northwest Brooklyn Continued to Command Premium Pricing

Northwest Brooklyn—including Brooklyn Heights, Cobble Hill, Boerum Hill, Carroll Gardens, DUMBO, Park Slope and surrounding neighborhoods—delivered particularly strong results.

Condo sales increased 25.5% year over year, with a median price of $1.675 million. The average condo sale price reached approximately $1.9 million.

The townhouse and house market remained highly competitive despite fewer transactions. The median sale price for houses rose nearly 20% to $3.5 million, while the average price climbed to approximately $4.17 million.

These results reinforce the continued demand for Brooklyn townhouses, larger residences and homes offering architectural character, outdoor space and move-in-ready interiors.

Activity Varied Across Manhattan

Performance in Manhattan remained highly neighborhood- and property-specific.

On the Upper West Side, sales increased slightly year over year, while total dollar volume rose 22.2%. The median sales price increased 8% to approximately $1.43 million, and the average price rose more than 20%.

The Upper East Side recorded a 15.2% increase in its average sales price, reaching approximately $2.39 million. Sales volume increased 16%, supported by strength in both condos and co-ops.

Midtown West experienced fewer closings, but contract activity increased 16.5% year over year. Its median contract price rose nearly 29%, suggesting improving demand for larger and higher-priced properties.

Lower and Upper Manhattan also recorded notable increases in contract activity, demonstrating that demand extended beyond the traditional luxury core.

Inventory Remained Constrained

Limited inventory continued to influence both boroughs.

Manhattan ended the quarter with 6,616 active listings, an 8.2% decline from the previous year. New listings fell 13%, extending a multiyear pattern of restricted supply. The shortage was particularly noticeable between $1 million and $3 million, where buyers faced fewer options and continued competition.

Brooklyn inventory declined 8.8% to 3,286 active properties. New listings were down 7.8%, while house inventory fell nearly 15%. Luxury condo and house inventory also contracted following a strong quarter for sales and contracts.

The limited supply helped support prices, but it did not eliminate the importance of accurate pricing. Manhattan properties spent an average of 122 days on the market, compared with 98 days in Brooklyn. Properties that launched too far above market expectations frequently required more time or price adjustments before attracting a buyer.

What This Means for Buyers and Sellers

For buyers, the increase in signed contracts suggests that competition may remain strong for well-priced, high-quality properties. Being financially prepared and understanding recent neighborhood-level sales can make a significant difference when a compelling opportunity becomes available.

For sellers, declining inventory creates an advantage, but buyers remain selective. Strategic pricing, thoughtful preparation and strong marketing are essential. Properties that are positioned correctly from the beginning are more likely to generate early interest and achieve a successful result.

Manhattan and Brooklyn continue to demonstrate long-term strength despite economic uncertainty. With contract activity rising, luxury demand holding firm and inventory remaining limited, both markets appear positioned for continued momentum through the second half of 2026.

Considering buying or selling in Manhattan or Brooklyn? Contact Randy Baruh for a personalized analysis of your property, neighborhood and current market position.