Inhabit by Corcoran

“Manhattan had a powerful start to the year. Sales are growing, volume is up, and pricing is holding firm, even with all the noise in the broader economy. It’s an active market, but a disciplined one. Demand is there; buyers are just more thoughtful about when and how they move. When something is priced right and move-in ready, it sells quickly, which tells you the fundamentals are solid. Inventory remains tight, especially in new development, and that’s continuing to support pricing, particularly at the higher end. As we head into spring, it really comes down to supply and confidence. As confidence builds, the market should continue to move forward in a measured, intentional way. I think we’re set up for a strong season ahead.”

– Pamela Liebman, Corcoran President & CEO

Manhattan entered 2026 from a position of strength.

• We saw closings rise 1% year over year to 2,757, the sixth consecutive quarter of annual sales growth and the strongest First Quarter since 2022.
• At the same time, total sales volume increased 4% to $6.2 billion, making it one of the highest first-quarter totals we’ve seen in nearly a decade. What that tells us is that, despite all the macro noise, the market is continuing the steady, disciplined momentum that really defined 2025.

Demand is still very much there, but buyers are more timing-sensitive.

• Signed contracts were down 11% YOY, which is the first decline we’ve seen since 2024, but we view that as a pause rather than a pullback.
• Buyers are reacting to geopolitical uncertainty, volatility in the financial markets, and the expectation that mortgage rates may improve later this year. That said, when buyers decide to move, they are moving quickly and with conviction, which tells you the underlying demand hasn’t gone anywhere; it’s just more selective.

Well-priced homes continue to move quickly.

• Days on market dropped 9% year over year to 110 days, which is the fastest pace we’ve seen to start a year since 2018.
• The market is really rewarding accuracy. When a property is priced correctly and is move-in ready, it’s getting strong interest and trading efficiently. When it’s not, it tends to sit. This is a market that’s being driven by alignment between price and value.

Inventory remains one of the biggest constraints, especially on the new development side.

• We saw active inventory fall 2% YOY to just over 6,000 units, which is a five-year low for a first quarter.
• New listings were also down 7%, as many sellers are still taking a wait-and-see approach. On top of that, only 81 new development units launched this quarter, which is about 75% below the 10-year average. We’re dealing with a very limited pipeline, and that’s going to continue to shape the market as we move through the year.

Strong luxury demand and that supply constraint is part of what’s driving pricing.

• Median price increased 9% year over year to about $1.28 million, and price per square foot rose 4% to $1,972.
• A big part of that is a shift in the mix of sales, with transactions above $3 million up 10% year over year.
• This isn’t a case of broad-based price acceleration across the board; it’s a function of limited inventory and more activity at the higher end, which is supporting pricing overall.