The Manhattan market continued its return to growth from the end of 2025 into the first quarter of this year with rising prices, increased sales volume, and declining inventory levels. The market shifted from one favoring buyers to a more balanced environment that favors neither buyers or sellers, driven largely by low inventory levels.
Q1 Prices
Last quarter median and average prices were close to record highs with median price increasing 5% to $1.225 million and average price dropping almost 2.5%. The decrease in average price is attributed to sales of smaller apartment sizes and fewer purchases of high-priced new development condos.
The luxury sector has remained especially strong since the end of 2025, with momentum carrying into the last quarter. Luxury sales volume increased 1.4% year-over-year while activity was particularly strong in the $3 to $5 million price range.
Sales Volume and Inventory
Despite limited inventory, first quarter sales increased nearly 3% compared with the same period last year. Inventory remained constrained through the first week in May with 700 fewer properties on the market, down 8% year-over-year. Supply conditions also tightened, with the average months of supply falling to seven months, a 19.5% decrease from a year ago.
Pending Sales
The spring market got off to a slower start amid uncertainty surrounding the onset of the war. Activity began to rebound in late March and continued through the first week in May, with signed contracts rising 2.1% compared to the same period last year. April was particularly active, with signed contracts increasing 5% year-over-year. Pending sales likely would have been stronger if not for limited inventory levels.
Sellers
While the market slowly inches away from buyers, the fundamentals for sellers remains the same. Today's buyers are attracted to apartments that show well and are priced fairly. Price it right and present it right from the outset and you'll generate strong interest - sometimes even multiple offers. Overprice, however, and buyers will gravitate to more competitively priced properties.
The first 30 days on the market are critical, that's when a property receives the most attention from buyers. Sitting on the market at too high of a price ultimately weakens the perceived value of the property and typically leads to a lower closing price. If activity is slow, adjusting the price within the first 2-3 weeks can help reposition the property competitively and re-engage buyers.
Buyers
Living in New York City is expensive whether you rent or buy, and rents continue to climb with no clear end in sight. On the sales side, however, the market still offers opportunities for buyers - particularly below the $2 million price point or for unrenovated properties. Buyers currently have more leverage in negotiating price and terms then they would in a competitive seller's market, while also gaining the long-term benefit of building equity through homeownership. Considering a purchase? Contact your lender - good credit and paying upfront fees can bring your interest rate below 6%.
