Manhattan Market Update: Q1 2025

Manhattan is off to a roaring start in 2025.

For just the fourth time in two decades, all key demand indicators improved in the first quarter — a rare and powerful sign of market momentum. We saw a 14% surge in closed sales year-over-year, nearly 2,700 transactions, and sales volume soared to over $6 billion, the highest annual gain in three years.

Prices are climbing, thanks to strong buyer demand, fewer listings, and an especially competitive luxury market. The median price in Manhattan rose 12% year-over-year to $1.175M, driven by more sales in larger, higher-end properties. Resale condos hit an all-time high with an 18% jump in median price to $1.595M.

Contract activity also remained strong, with signed deals up 3% from last year, marking the fourth straight quarter of annual gains.

Inventory Remains Tight

Inventory remains one of the market’s biggest challenges. Fewer listings, coupled with increased buyer activity, pushed the number of active listings to just over 6,200 — one of the lowest first-quarter totals in the past nine years. New listings dropped to an 11-year low, with just 4,529 homes hitting the market (excluding 2020).

Interestingly, supply shifts are uneven by price point:

• Homes under $2M saw inventory grow 5%, but with fewer signed contracts. Buyers in this category typically rely on mortgages and the higher rates have suppressed demand.
• Listings over $5M dropped 9%, yet saw robust deal activity — proof that luxury buyers are back in a big way.

Pricing Gains

The median price at $1.175M rose 12% versus 2024’s three year low of $1,050M. Versus a year ago, closing activity shifted to larger apartments and more expensive submarkets, driving the increase.

• After seven consecutive quarters with year-over-year declines, price per square foot statistics finally increased year-over-year, but by more moderate annual percentages than average and median sale price figures.
• The number of sales over $1,500 per square foot climate 48% annually.
• New development price statistics increased minimally year-over-year. The median price of $2.255M was essentially unchanged versus 2024.

Submarket Highlights

• East Side: Closed sales rose 26% annually to 635 closings driven by an increase in New development sales. Inventory remains very tight in this neighborhood especially for larger apartments.
• West Side: West side sales rose 30% annually to about 600 closings. For the first time since 2012, all product types had yearly gains in sales, including a jump in new development closings over 50%.
• Midtown: Midtown sales declined year-over-year for the first time in a year, down 3% to about 370 closings. Inventory meanwhile rose 3% to 1,230 units.
• Downtown: After ten quarters with annual declines, Downtown sales have now risen for two consecutive quarters. Closings were up 18% to 785 sales. Active listings remain historically low.
• Financial District & Battery Park City: Sales fell 19% annually to approximately 100 closings, the worst performing neighborhood in Manhattan last quarter. Inventory has increased by 9% annually to 359, the highest first quarter figure since 2020,
• Upper Manhattan: For the third consecutive quarter, Upper Manhattan active listings climbed annually more than any other Manhattan submarket, up 10% to 596 units driven by resale condos.

Buyer Opportunities

If you have been looking for a larger apartment on the Upper East Side or Upper West Side consider looking further north in Upper Manhattan. Downtown buyers who are priced out should consider looking in Midtown or the Financial District.

Seller Opportunities

There is a shortage of inventory, especially for larger apartments, on the Upper East Side, the Upper West side and Downtown for properties valued above $5 million.

Key Q1 2025 Stats from the Corcoran Report:

• Closed Sales: 2,682, up 14% year-over-year but down 2% quarter-over-quarter.
• Contracts Signed: 2,934, up 3% year-over-year and 4% quarter-over-quarter.
• Median Price: $1.175M, up 12% year-over-year and 7% quarter-over-quarter.
• Inventory: 6,217, up 1% year-over-year and 5% quarter-over-quarter.
• Days on Market: 117, down 18% year-over-year and 0% quarter-over-quarter.
• Average PPSF: $1,858, up 9% year-over-year but down 5% quarter-over-quarter.

The Manhattan market is full of opportunities for buyers and sellers alike. Whether you’re looking to maximize your investment as a seller or secure a home at a strategic price as a buyer, this is the time to act.

Let’s discuss how I can help you achieve your real estate goals in 2025!