M
anhattan's Real Estate Pulse: A Thriving Market in 2025

    A resounding start to the year, Manhattan's real estate market is firing on all cylinders. Despite economic uncertainty, the city has defied expectations with a surge in sales, dwindling supply, and accelerated deal activity.

    For only the fourth time in two decades, all key demand indicators have improved simultaneously, setting the stage for a remarkable quarter. Sales skyrocketed 14% year-over-year to nearly 2,700 transactions – the largest annual percentage gain in three years. The sales volume reached an impressive $6.05 billion, fueled by rising prices and a shrinking inventory.

    The luxury market is driving this growth, with median prices increasing 12% year-over-year to $1.175 million. This shift towards larger apartments and more expensive submarkets has pushed the overall median price higher than last year's figures for the first time since mortgage rates spiked in 2022.

    Resale condo prices have reached record highs, with a staggering 18% year-over-year increase to $1.595 million. The luxury sector is particularly robust, with deal activity remaining strong despite fewer new listings.

    Inventory levels continue to decline as sales outpace new listings. With approximately 6,200 active listings as of mid-March – a 1% annual drop – the market is experiencing its second-lowest first quarter in nine years. New listings have fallen to an 11-year low (excluding 2020) of just 4,529, a 12% decrease from typical first-quarter numbers.

    The market's dynamics vary by price point: homes listed under $2 million saw a 5% year-over-year increase in inventory and less contract activity, while those listed over $5 million experienced a 9% decline in inventory but maintained robust deal activity.