M
anhattan's luxury real estate market is thriving, while the rest of the market shows signs of a slowdown. According to a recent report by Miller Samuel for Douglas Elliman, cash deals accounted for 69% of Manhattan homebuying in the second quarter of 2025, a record-breaking figure.

    The luxury segment is particularly hot, with sales outpacing the overall market and median prices reaching $6.52 million. This surge can be attributed to the success of financial markets, which has a direct impact on the luxury market. When Wall Street does well, so does Billionaire's Row.

    In contrast, the rest of the market is facing challenges due to high mortgage rates and other factors. Deals involving financing contingencies have reached their second-highest level in a decade, indicating that buyers are becoming increasingly cautious about securing financing. Overall inventory increased by 3% year-over-year, but luxury stock plunged by 21%.

    Market uncertainty could begin to affect the luxury market in the coming quarter. However, cash buyers remain unfazed, and it remains to be seen whether they will continue to drive sales in the summer months. The average home buyer still faces a challenging financing landscape, with median prices increasing by less than 2% year-over-year and overall inventory growing by just 3%.