Manhattan Real Estate Market Report: 4Q 2025
“The headlines may have focused on the headwinds this year, but Manhattan was only focused on results. This was our strongest fourth quarter in three years — sales rose, pricing strengthened, and marketing times fell. Even against a backdrop of political noise and ongoing rate conversations, the market pushed forward with stronger sales activity and faster deal velocity. Contracts have now increased for seven consecutive quarters — a clear signal of durable buyer demand and strong momentum as we move into the new year. We expect that strength to carry forward into 2026, with buyers and sellers stepping back into the market with even more confidence.”
– Pamela Liebman, Corcoran President & CEO
Sales momentum strengthened further this quarter.
- Closings rose 3% YOY to roughly 2,800 transactions, the strongest fourth quarter in three years and the fifth consecutive quarter of annual sales gains, something we’ve only seen twice in nearly two decades.
- Sales volume climbed 4% to $6 billion, thanks in part to a meaningful increase in high-end activity.
- Signed contracts also extended their upward streak, marking a seventh straight quarter of annual growth.
Demand strength translated into faster deal velocity.
- With inventory tightening in select segments and the buyer pool becoming more decisive, average days on market dropped to 108 days — more than a week faster than last year.
- Buyers are still value-conscious and highly selective, but when well-priced and well-presented homes come to market, they are moving more quickly.
Inventory trends told a nuanced story.
- Listed supply rose 4% YOY to just over 6,100 homes, marking the second straight quarter of annual gains.
- However, even with that increase, available inventory remains historically lean for a fourth quarter.
- Importantly, most of the growth came from the resale market.
- New development supply fell to near decade lows, with only 196 sponsor units introduced — roughly half of what we typically see in 4Q. The result is a market where choice exists, but quality supply, especially at the high end, remains limited.
Pricing dynamics reflected this shift in composition rather than underlying weakness.
- Median price rose 7% to $1.18 million, driven by stronger activity in larger and more expensive homes.
- At the same time, average price per square foot ticked lower — largely a statistical effect caused by the absence of last year’s ultra-luxury, Billionaire’s Row outliers. When those one-off trades are removed, price trends are broadly consistent with the steady upward movement we saw throughout 2025.
