Manhattan Real Estate Market Report: Q2 2025
The second quarter of 2025 marked a notable rebound in the Manhattan residential real estate market. Against a backdrop of global uncertainty and persistently high interest rates, sales activity accelerated while listing inventory rose at a slower pace. The result was a reduction in months of supply and moderate pricing gains, supported heavily by cash transactions. The tables in the report present a comprehensive view across various segments and property types.
Manhattan Market Overview
This table captures the general health of Manhattan’s co-op and condo markets. The number of closed sales surged to 3,042, up 16.6% year over year, while listing inventory rose modestly by 3.1% to 8,296 units. Median sales price increased slightly to $1.2 million, a 1.6% gain from the prior year, with the average sales price reaching $2.1 million. Although average price per square foot declined 1.3% annually, the market showed signs of balance with a reduced months of supply (8.2) and lower listing discount (5.8%) than the prior year.
Re-Sales Market
Re-sale transactions comprised 86.6% of the market with 2,634 closings, an annual increase of 16.2%. The median sales price remained flat at $1,053,500, while the average price per square foot dipped to $1,485. The listing discount narrowed significantly to 6%, down from 12.2% a year earlier, suggesting stronger negotiation leverage by sellers. Listing inventory increased to its highest point in over four years, but months of supply still declined to 8.1, reflecting improved absorption.
Co-op Market
In the co-op market, closed sales climbed 11.4% to 1,623. Median sales price remained flat year over year at $850,000, while the average sales price saw a modest annual rise of 2.6% to $1.36 million. Days on market fell to 90, and inventory slightly increased. Despite the higher number of listings, months of supply decreased to 7.3. Notably, the average price per square foot held steady at $1,192, suggesting stability in co-op valuations.
Condo Market
Condominium sales surged 23.2% to 1,419 transactions. Median sales price declined for the first time in five quarters, falling 3.8% year over year to $1.67 million. The average price per square foot remained elevated at $2,045, reflecting the premium nature of this segment. Listing discount dropped dramatically to 5.6%, and months of supply improved to 9.2, showing an accelerating pace of absorption despite higher price tags.
New Development Market
New development sales jumped 19.3% to 408 units, just shy of the decade average. Median sales price increased sharply by 13.1% year over year to $2.31 million, driven by a 13.3% increase in average unit size. Despite pricing strength, listing discount decreased to 3.6%, and days on market fell to 84. Months of supply was significantly down to 8.7, suggesting strong demand for newly constructed homes amid constrained new inventory growth.
Sales in the sub-$1M bracket represented just 14.7% of new development volume, while the $1M–$3M range dominated with 47.5%. Sales over $3M accounted for 37.7% and saw a strong 33.9% year-over-year increase, demonstrating persistent demand for upscale inventory. These patterns show that buyers in this segment are gravitating toward premium products, even in a high-rate environment.
Luxury Market
The luxury segment, comprising the top 10% of sales starting at $4.5 million, posted 310 sales, up 18.3% annually. Median sales price increased by 8.8% to $6.53 million, though the average price per square foot was down slightly. Days on market extended to 133, suggesting longer decision cycles at the high end. Listing inventory declined sharply by 21.2%, bringing months of supply down from 18.2 to 12.1, highlighting a tightening luxury landscape despite economic volatility.
Within the luxury tier, condos claimed 47.4% of the market, with a striking median price of $11.74 million. Co-ops made up 52.6% with a median of $4.2 million, while new development units represented nearly one-third of luxury sales at a median price above $7 million. Re-sales dominated the luxury segment overall, comprising 68.1% of transactions. This indicates continued reliance on established high-end properties, even as new product gains traction.
Conclusion
The second quarter of 2025 reflects a Manhattan housing market marked by rising demand, moderate pricing recovery, and more competitive conditions for buyers. From starter units to luxury properties, sales activity improved across all sectors, and cash buyers continued to dominate, reducing reliance on financing. As inventory climbed only modestly, tightening supply in several segments suggested strong absorption and growing confidence in the market’s direction. Despite economic headwinds, the resilience of Manhattan’s housing market continues to be reinforced by wealth-driven activity, stable pricing in most segments, and an improving pace of sales.
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