The Manhattan residential real estate market has seen a steady build in momentum since the third quarter of last year.
Strong first-quarter results come as no surprise, following the 26% increase in signed contracts I reported in Q4. Many of those contracts closed in Q1, fueling a more than 28% increase in closed sales volume — along with gains in median and average prices of 13.2% and 18.6% respectively, as well as an increase of 11.2% in average price per square foot.
Pent-up demand, limited inventory, strong equity markets, and healthy Wall Street bonuses were the primary drivers of sustained buyer activity in Q1.
In fact, Q1 2025 recorded the highest year-over-year increase in signed contracts since 2022. March stood out in particular, with a 10.2% jump in signed contracts compared to the same time last year. The luxury segment also continued its strong performance, with the final week of March recording the highest number of signed contracts since 2021.
Despite increased activity and rising prices, the market remains balanced — favoring neither buyers nor sellers.
Buyers continue to favor well-renovated homes in desirable neighborhoods that are priced competitively. As such correct pricing is still critical for securing the best outcome. Overpriced listings tend to linger, often selling for less than if they had been priced appropriately from the start.
Looking ahead, a key question remains:
Will last week’s newly imposed tariffs and the resulting volatility in global equity markets cause a shift in buyer sentiment? Will some prospective buyers adopt a “wait and see” approach, or will others view Manhattan real estate as a safe haven in uncertain times? Buyer activity over the next few weeks will provide insight into how the market responds to current headwinds and whether market momentum will continue trending upward. Stay tuned!
