August Market Update: A Subtle Shift Beneath the Surface
While the Manhattan market took a modest breather in August, the bigger story lies beneath the surface. Yes, signed contracts dipped slightly—down 3% from last year and 6% below the 10-year average—but buyers are still very much in the game. They’re just moving with more intention and discernment.
Interestingly, deals are happening faster, not slower. The average days on market fell to 125 days, an 11% improvement from last August. In a market known for its complexity, this speaks volumes: buyers are acting quickly when they spot value.
By property type, condo contracts declined 4%, while co-op activity remained relatively stable, slipping just 1%. Yet not all segments slowed—resale activity was particularly strong in the $1M–$2M and $3M–$5M ranges, where motivated buyers are still transacting. These buyers appear to be responding to a combination of elevated rents and gradually declining mortgage rates, which are improving affordability at key price points.
As of September 15th, Bankrate reported the 30-year fixed mortgage rate at 6.32%, with the 15-year fixed rate even lower at 5.53%—offering buyers a compelling reason to act sooner rather than later.
Downtown and Midtown posted year-over-year gains, while the Upper West Side held steady. On the Upper East Side, activity dipped slightly—likely due to limited inventory, which has remained low throughout the year. Meanwhile, Upper Manhattan and the Financial District saw more pronounced slowdowns, with double-digit declines in signed contracts, suggesting a shift in buyer demand or pricing sensitivity in those areas.
Still, pricing remained remarkably stable. The average price per square foot held at $1,821, unchanged from last year but up 5% from July. The monthly increase was driven by a higher share of contracts asking over $2,000 per square foot—an indicator that demand for well-located, turnkey product is still strong.
Negotiability tightened, with the average discount narrowing to just -3.1% off the last asking price. Approximately 70% of contracts were still signed below ask—consistent with this time last year—but buyers had less room to negotiate overall. In today’s market, transparency, positioning, and timing matter more than ever.
The Luxury Lens
The $5M+ market experienced a steeper slowdown. Only 46 contracts were signed in August—15% fewer than a year ago—and active listings fell to the lowest level in over a decade. That shortage of supply, especially for top-quality resale units, continues to shape this tier of the market.
That said, luxury pricing remains strong, with the average asking price per square foot reaching $3,407, up 8% year-over-year. New developments are also skewing days on market higher, as buyers take more time to evaluate premium inventory.
Rental Resilience
On the rental side, Manhattan’s leasing activity slowed in August, marking the weakest August in five years. Yet despite the cooldown, rents remained high, with a median rent of $4,960—just 1% below July’s all-time high and still up 13% annually. Inventory is shrinking, and demand hasn’t gone anywhere.
In contrast, Brooklyn held its momentum. Leasing activity increased 12% from July, and median rent rose to $4,175, reflecting ongoing demand in a borough with limited options and increasing appeal.
Takeaway: A Market of Subtle Shifts and Smart Moves
The takeaway from August is this: buyers are active, but deliberate. Pricing is holding up, inventory remains tight, and the window for strong negotiation is narrowing. Sellers with well-prepared listings are still seeing results—especially in the mid-market and prime resale segments.
If you're thinking about buying, selling, or renting this fall, preparation and local expertise will be key. This market rewards decisiveness, but it also demands strategy.
All data sourced from The Corcoran Group – Market Research, August 2025.
