Inhabit by Corcoran

“Manhattan’s third quarter results show a market with real underlying strength, even as buyers contend with higher borrowing costs and new policy headwinds like the pied-à-terre tax. That tax is already adding another layer of uncertainty for buyers, particularly at the upper end of the market, and at a time when New York City should be focused on encouraging investment, not creating new reasons for people to pause.

Even so, buyers who find the right home are moving decisively. Faster sales and a surge in luxury closings make clear that demand is still there. The bigger structural issue continues to be a lack of supply. With available listings and new development inventory both near multi-year lows, buyers are competing for a shrinking pool of homes. Until we see new inventory come to market, limited supply will continue to support pricing and intensify competition for the city’s most desirable properties.”

– Pamela Liebman, Corcoran President & CEO

Closings reached a four-year high, even as contract activity moderated.

• Closed sales rose 9% YOY to 3,625, the strongest third quarter since 2022 and 8% above the 10-year third quarter average.
• Dollar volume grew 10% to about $7.3B, the first time since 3Q 2022 that it topped $7B.
• Signed contracts slipped 6% YOY to 2,532, only the second decline in 10 quarters, as higher mortgage rates, the new pied-à-terre tax, and thin supply gave buyers pause.
• Homes are selling faster.
  • Contracts are being signed in 90 days on average, two weeks (13%) faster than a year ago and the quickest since 2022. It’s the ninth straight quarter of annual improvement.
  • Well-priced listings are still drawing quick decisions.

Limited supply remains the tightest constraint on the Manhattan market.

• Active listings are down to 6,354, 3% below last year and the thinnest third quarter supply since 2017.
• New listings fell 6% to 3,469, the third straight annual decline, as sellers pulled back alongside buyers.
• New development is where supply is shrinking fastest.
  • Sponsor listings dropped 22% YOY to 564 units, the lowest level since 4Q 2012 and the 13th consecutive quarterly decline.
  • The total number of units at new developments that launched in 3Q 2026 rose 4% YOY to 286 residences, well above 2Q’s 160 units, but not enough to offset the shortfall.

Prices have now risen year over year for seven straight quarters.

• The median sale price rose 4% annually to a third quarter record high of $1.250M.
• Average price per square foot increased 2% to $1,751, and median PPSF rose 5% to $1,420.
• All four market-wide price metrics rose annually for the seventh consecutive quarter up, the longest such streak since 2016.

 The high end is driving the market.

• Closings above $3M jumped 25% YOY, led by a 40% surge from $3M to $5M. Closings below $3M rose 6%.
• Sales over $3M made up 19% of the market, tied for an all-time high. Sales below $1M fell to 42%, the second lowest share on record outside of 2Q19, when the mansion tax increased.
• Resale condos led the way, with sales up 15% to 1,266 and a record median price of $1.650M. Resale co-op median price held flat at $875K.
• Downtown (+21% sales, median price +17% to $1.700M) and Midtown (+22% sales) posted the strongest gains, while the East Side and West Side were roughly flat to slightly lower.