The number of deals and the average sales price have increased annually for the fifth time in a row, the newspaper said Elliman Report for co-ops in Manhattan and apartment sales in the fourth quarter. Manhattan’s median sales price — a mix of co-op and condo prices — rose 2.3 percent to $1,125,000 from the fourth quarter of 2024.
The number of closed deals rose 5.4 percent from a year ago, and the number of listings fell annually for the first time in four quarters, according to the Elliman Report. The stock fell 4.4 percent.
As a result of “rising sales and falling inventory, the market felt a quicker crash,” wrote Jonathan Miller, president and CEO of an appraisal firm. Miller Samuel and author of the report.
Cash deals were higher than normal, a continuing trend. Three out of four apartment buyers paid with cash, the second-highest market share ever, Miller said. But a drop in mortgage rates has boosted sales of cheaper units, namely co-ops – deals that typically rely on financing.
Miller said co-op units saw a larger increase in deals than apartments for the first time in more than a year. Co-op deals rose 7 percent annually, and the average sales price for co-ops rose 3.8 percent to $825,000.
Apartment deals rose 3.4 percent annually and the average sales price for apartments fell 0.2 percent to $1,661,000, according to the Elliman Report.
Mortgage interest: ‘The best news in 2025’
In her Manhattan company’s fourth-quarter sales market report, Bess Freedman, CEO of Brown Harris Stevens, called the sharp drop in mortgage rates in the second half of the year ‘the best news in 2025’.
She said that “30-year yields are now hovering around 6.2 percent and are expected to fall in 2026.”
Freedman noted that the Manhattan sales market behaved very differently from national real estate trends.
“Unlike many other markets, Manhattan has maintained healthy levels of homes for sale, which has prevented prices from rising too quickly. As rates continue to decline, we expect to see a very active market in Manhattan in 2026,” she said.
‘Strongest quarter in three years’
Pamela Liebman, chairman and CEO of The Corcoran Group, noted in her company’s Manhattan market report that “this was our strongest fourth quarter in three years: sales increased, prices strengthened and marketing times decreased.”
She said five consecutive quarters of annual revenue growth is something Manhattan has only experienced twice in 20 years.
Due to stronger demand, fewer listings in some segments of the market and “buyers becoming more decisive,” Liebman said the average number of days on market was a week faster than a year ago.
Cash buyers are ‘insulated from economic headwinds’
Compass report, written by Rory Golod, president of growth and communications, and Danielle Elo, senior managing director, focused attention on the luxury and ultra-luxury segments of the market.
Apartments priced above $20 million saw a 12.5 percent increase in contracts, they wrote.
And in the $3 million to $5 million range, there was 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 fixture of the market, and hungry buyers looked for off-market opportunities,” says Brian K. Lewis, a broker at Compass.
“If you can get through the co-op process, you’ll find great 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 end-of-year break’
Kevelyn Guzman, regional vice president of Coldwell banker Warburg, noted in her company’s fourth-quarter market update: “As expected, activity fell back to its usual year-end lull, but prices largely held up.”
Guzman attributed the drop in inventory to sellers deciding to postpone the promotion until the spring. That tighter supply prevented listing prices on the market from falling.
Desire for new development
There is a steady demand for new developments, wrote Coury Napier, research director SERGEANT, in its fourth quarter Manhattan market report for the company. Deals rose and the year ended with a 39 percent annual increase in closings according to his analysis, he said.
“New developments in sought-after locations, with above-market finishes and a robust range of amenities continue to capture buyer attention,” Napier said.
But demand exceeds supply. According to figures, there were more signed contracts for new construction in Manhattan and Brooklyn than new units became available Brown Harris Stevens Development Marketing analysis of new year-end developments in Manhattan and Brooklyn.
BHSDM’s report states that listing restrictions 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 will not exceed absorption, it will provide relief, especially in Brooklyn where inventories are particularly 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 the smallest buyer pool BOND New York Fourth quarter market report.
The result: Townhouse deals are driven by unique property characteristics and don’t follow market trends, according to the report, which notes that the median sales price for Manhattan townhouses in the fourth quarter was $5,100,000.
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