Inhabit by Corcoran

“If this quarter proved anything, it’s that Manhattan buyers remain remarkably confident — but the market is also beginning to show the early effects of the new pied-à-terre tax. While overall contracts climbed to a four-year high, activity above $5 million has softened since the tax was announced, with the sharpest pullback at the ultra-luxury end of the market, suggesting some buyers are already recalibrating as they assess the new landscape.

Even so, demand remains resilient. Luxury buyers are engaged, well-capitalized and ready to act when the right property comes to market. As we look ahead to the second half of 2026, the market will be watching closely to see whether the new tax has a more lasting effect on high-end purchasing decisions. But the defining challenge remains the same: whether enough quality inventory will come to market to meet continued demand.”

– Pamela Liebman, Corcoran President & CEO

Buyer demand proved more resilient than many expected.

• Signed contracts increased 5% YOY to 3,477 deals – the eighth annual increase in nine quarters and a five-year high.
• While closed sales declined 7%, closings reflect buyer decisions made several months ago during a slower winter period. Today’s contract activity paints a much stronger picture of where the market is heading.
• Luxury continued to lead the market. Contracts over $3 million increased 17%, while contracts above $5 million rose 5%, demonstrating that affluent buyers remain committed to Manhattan despite new tax considerations.
• Marketing times continued to improve. Average days on market fell to 115 days, marking the eighth consecutive quarter of year-over-year improvement.
• Buyers remain disciplined and value-conscious, but quality homes priced appropriately continue to transact quickly.

Inventory remains the defining story of the Manhattan market.

• Active inventory declined 2% YOY to 7,182 listings, the lowest second-quarter inventory level in eight years.
• New listings also fell 4%, while buyer demand accelerated, creating continued competition for quality homes.
• The most significant supply challenge continues to be new development.
• New development launches fell 37% YOY to just 160 units – roughly half the historical second-quarter average.
• Today’s limited pipeline will likely become tomorrow’s inventory shortage, continuing to support pricing for well-located properties across Manhattan.

Pricing continues to strengthen despite broader economic headwinds.

• Median sale price increased 7% YOY to $1.3 million – the second-highest level ever.
• Average sale price climbed 6%, extending Manhattan’s streak of annual price appreciation to six consecutive quarters.
• Price per square foot remained remarkably stable, with average PPSF increasing 1%.
• Limited inventory – particularly at the luxury end of the market – continues to provide meaningful support for pricing.

The market has become increasingly segmented.

• Affordability pressures continue to weigh on lower price points, with sales under $2 million declining 11% YOY.
• At the same time, sales above $2 million increased 4%, reinforcing that Manhattan is increasingly behaving as multiple markets rather than one.
• As borrowing costs remain elevated, affluent cash buyers continue to drive activity at the upper end while entry-level buyers remain more sensitive to financing costs.