Manhattan deals and median sales price rise for fifth consecutive time
- Median sales price for co-ops and condos climbed 2.3 percent to $1,125,000
- Deals were up 5.4 percent in the fourth quarter as per the Elliman Report
Manhattan co-op and condo listings fell annually for the first time in four quarters, according to the latest edition of the Elliman Report.
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The Manhattan sales market for co-ops and condos sped up in the fourth quarter with deals happening at a faster pace and a new decline in listings.
The number of deals and median sales price saw annual increases for the fifth, straight time, according to the Elliman Report for fourth quarter Manhattan co-ops and condo sales. Manhattan’s median sales price—a blend of co-op and condo prices—climbed 2.3 percent to $1,125,000 from the fourth quarter of 2024.
Closed deals were up 5.4 percent over a year ago, and listings fell annually for the first time in four quarters, the Elliman Report said. Inventory was down 4.4 percent.
As a result of “rising sales and falling listing inventory, the market felt faster on the ground,” wrote Jonathan Miller, president and CEO of appraisal firm Miller Samuel and author of the report.
Cash deals were higher than usual, a continuing trend. Three out of four condo buyers paid with cash, the second-highest market share on record, Miller said. But a drop in mortgage rates helped boost sales of lower priced units, namely co-ops—deals that typically rely on financing.
Miller said co-op units saw a larger increase in deals than condos for the first time in more than a year. Co-op deals were up 7 percent annually, and the median sales price for co-ops increased 3.8 percent to $825,000.
Condo deals were up annually by 3.4 percent and the median sales price for condos slipped 0.2 percent to $1,661,000, as per the Elliman Report.
Mortgage rates: ‘The best news in 2025’
In her firm’s Manhattan fourth quarter sales market report, Bess Freedman, CEO of Brown Harris Stevens, called the sharp decline in mortgage rates in the second half of the year “the best news in 2025.”
She said that “30-year rates are now hovering around 6.2 percent and are expected to go lower in 2026.”
Freedman noted that the Manhattan sales market behaved very differently compared to national real estate trends.
“Unlike many other markets, Manhattan has maintained a healthy level of homes for sale which has kept prices from rising too rapidly. As rates continue to head lower, we expect a very active Manhattan market in 2026,” she said.
‘Strongest quarter in three years’
Pamela Liebman, president and CEO of The Corcoran Group, noted in her firm’s Manhattan market report that “this was our strongest fourth quarter in three years—sales rose, pricing strengthened, and marketing times fell.”
She said that five consecutive quarters of annual sales gains was something that Manhattan has seen only twice in 20 years.
As a result of stronger demand, fewer listings in some segments of the market, and “buyers becoming more decisive,” Liebman said average days on market was a week faster than a year ago.
Cash buyers ‘insulated from economic headwinds
Compass’s report, written by Rory Golod, president of growth and communications, and Danielle Elo, senior managing director, drew attention to the luxury and ultra-luxury segments of the market.
Condos priced above $20 million saw a 12.5 percent increase in contracts, they wrote.
And the $3 million to $5 million range saw double-digit contract growth, “highlighting how cash-rich buyers at the top of the market remain insulated from economic headwinds,” they said.
With cash buyers so prevalent, “bidding wars became a regular part of the market, and hungry buyers sought off-market opportunities,” said Brian K. Lewis, a broker at Compass.
“If you can endure the co-op process, you will find tremendous opportunities in a well-priced, classic co-op. Because co-ops got here first, they usually have the best locations in town,” Lewis said.
‘Usual year-end lull’
Kevelyn Guzman, regional vice president of Coldwell Banker Warburg, noted in her firm’s fourth quarter market update: “As expected, activity pulled back into the usual year-end lull, but prices largely held their ground.”
Guzman attributed the inventory decline to sellers deciding to hold off listing for spring. That tighter supply prevented prices for listings on the market from dropping.
Desire for new development
There’s steady demand for new development, wrote Coury Napier, director of research at SERHANT, in his fourth quarter Manhattan market report for the firm. Deals were up and the year concluded with a 39 percent annual increase in closings according to his analysis, he said.
“New developments in desirable locations, with above-market finishes and robust amenity offerings continue to capture buyer attention,” Napier said.
But demand has been outpacing supply. There were more signed contracts for new development in Manhattan and Brooklyn than new units available, according to Brown Harris Stevens Development Marketing’s year-end new development analysis of Manhattan and Brooklyn.
The report from BHSDM said constraints on listings will ease over the next three years when more than 2,900 new development units are expected to launch in Manhattan and more than 1,500 new development units are expected to launch in Brooklyn.
“While this won’t outpace absorption, it will bring relief, particularly in Brooklyn where inventory is especially low,” the report said.
Small townhouse market, big prices
Townhouses see the fewest number of transactions compared to other segments of the Manhattan real estate market. They also have the lowest inventory and smallest buyer pool, noted BOND New York’s fourth quarter market report.
The upshot: townhouse deals are driven by unique property traits and don’t tend to follow market trends, the report said, which said that the median sales price for Manhattan townhouses in the fourth quarter was $5,100,000.
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