Manhattan Real Estate Market Report: Q3 2025
The third quarter of 2025 continued Manhattan’s upward momentum in residential real estate, characterized by increasing sales, stable pricing, and improved absorption rates. Despite higher mortgage rates, the quarter recorded strong performance with growing demand and a dominance of cash transactions. Market activity remained ahead of long-term averages, supported by steady buyer confidence and modest growth in inventory. The following analysis examines each table in the report to capture the key dynamics shaping the quarter.
Manhattan Market Overview
The overall Manhattan market saw 3,158 closed sales, representing a 13.4% year-over-year increase and marking the highest quarterly total in over two years. The median sales price rose 5.8% annually to $1,180,000, while the average sales price reached $1,989,107, up 0.8% from last year. Listing inventory increased 7.0% to 7,733 units, but because sales grew faster, months of supply declined to 7.3. The average days on market shortened by 11.5% to 77, underscoring stronger buyer activity. The listing discount remained stable at 6.2%, suggesting balanced negotiation conditions. Year-to-date, average prices and total sales remained substantially higher than in 2024, indicating consistent market recovery.
Re-Sales Market
Re-sale properties continued to dominate the market, making up 81.7% of total transactions. The median sales price increased 2.7% annually to $1,026,500, while the average sales price rose 5.0% to $1,771,071. The number of closed re-sales climbed to 2,580, a 5.5% annual increase, though slightly lower than the previous quarter. Listing inventory grew by 9.1% to 6,559 units, but months of supply remained contained at 7.6, reflecting steady absorption. The days on market improved sharply to 77, suggesting heightened demand and quicker transactions. Although bidding wars declined, the segment continued to show stable pricing and competitive market conditions.
Co-Op Market
The co-op market displayed solid strength in Q3. Closed sales increased 11.0% year over year to 1,751, marking the third consecutive quarterly gain. The median price rose 3.6% annually to $870,000, while the average price climbed 8.3% to $1,456,738. Average price per square foot remained stable at $1,170, showing minimal change. Inventory fell 7.2% quarterly to 3,669, while months of supply dropped significantly to 6.3, indicating accelerating absorption. Days on market improved to 79, and the listing discount narrowed to 5.4%. Overall, co-ops outperformed in volume and pace, maintaining their affordability edge within the market.
Condo Market
Condo sales remained robust with 1,407 closings, a 16.6% year-over-year increase. Median sales price rose to $1,650,000, up 2.2% annually, while average price per square foot stood at $1,998. However, the average sales price decreased 5.1% compared to last year due to a larger share of mid-tier unit sales. Days on market fell to 74, reflecting faster turnover. Inventory grew modestly to 4,064, and months of supply dropped to 8.7. The listing discount was 6.6%, consistent with last year. Condos continued to attract cash buyers, particularly in the luxury bracket, with nearly 70% of transactions completed without financing.
New Development Market
The new development sector experienced a major resurgence. Sales surged 71.0% year over year to 578—the highest share of overall sales (18.3%) since 2019. Despite this, price trends moderated due to smaller average unit sizes. Median sales price declined 18.4% to $1,750,000, while average sales price dropped 26.8% to $2,962,350. The average price per square foot decreased to $2,206, but the days on market improved by 11.9% to 74. Listing inventory held steady at 1,174, and months of supply fell sharply to 6.1, its fastest pace in more than three years. This indicates that even with price adjustments, new developments moved rapidly, reflecting stronger demand for smaller, more attainable luxury units.
Luxury Market
The luxury segment, defined by sales above $4 million, maintained a strong position despite some pricing fluctuations. Median price rose 2.8% year over year to $5,922,500, while the average price reached $7,891,731. Listing inventory declined 16.1% to 1,317, leading to tighter supply conditions. Months of supply dropped significantly from 16.8 to 12.4—its lowest level since 2022—signaling a faster-moving high-end market. The number of closed luxury transactions increased 13.6% to 318, and days on market decreased to 109, pointing to improved buyer confidence in the luxury space. However, the listing discount remained at 8.3%, showing that negotiations are still part of the upper-tier dynamics.
Conclusion
Manhattan’s Q3 2025 market showed strong sales momentum, deep liquidity, and remarkable adaptability. Sales gains across all property types highlighted a sustained return of buyer confidence. Co-ops and re-sales benefited from stable pricing and faster absorption, while new developments experienced significant volume growth despite moderating prices. Luxury properties continued to thrive with tighter inventory and healthy appreciation. Overall, the quarter’s data suggests a resilient and increasingly balanced market—where demand remains high, inventory is efficiently absorbed, and Manhattan continues to reaffirm its strength as a premier real estate hub despite broader economic headwinds.
About SPiRALNY
Focused on providing a full-service real estate experience, SPiRALNY strives to answer the needs of clients with a sense of detail, care, and efficiency. Our agents work tirelessly to make the process of buying, selling, or renting seamless and exciting.
With an encouraging company culture, cutting-edge technology, and extensive training resources, SPiRALNY agents are destined for success.
