T
he stage is set for a transformative year in Manhattan real estate. While the market may be heating up, it's not a repeat of the frenzied pace seen in the mid-teens. We're still in the early innings, with plenty of game left to play.

    Since interest rates began their ascent three years ago, deal volume has been below average. However, this doesn't indicate low demand – quite the opposite. Manhattan's demand is always strong; it's just a matter of pricing. The pent-up energy from years of suppressed movement is finally starting to release.

    The real challenge lies in supply, which remains lower than past years despite recent increases. This scarcity is the primary driver behind muted deal volume. Serious buyers have adapted to the new normal of higher mortgage rates and are now actively seeking properties. Open house traffic has picked up, mortgage brokers are busier than ever, and offers are being made.

    The Listing Success chart reveals a telling trend: listings that sell within 30 days from listing date are becoming increasingly common. This shift suggests we're entering a multi-year period of escalating prices, driven by tight inventory, growing acceptance of market dynamics, and eventual rate easing. Those who act now will reap the benefits of affordability compared to future buyers.

    The Pricing Penalty chart highlights the importance of accurate pricing. Listings that sell quickly typically fetch their asking price, while those lingering on the market for too long face significant discounts. Sellers must strike a balance between pricing to value and generating interest. If you're not getting multiple showings or offers, your price is likely too high.

    As I always advise: before making any move in the Manhattan real estate market, take the time to assess whether it's the right moment to buy or sell. And don't underestimate the importance of choosing a trusted broker with experience – they can be your best investment yet.