The first quarter of 2025 brought a notable uptick in Manhattan’s residential market, with signed contract volume rising 17% year-over-year. After years of cautious activity, buyers are returning—motivated by a confluence of factors: the normalization of higher mortgage rates, persistent inflation concerns, equity market volatility, and a generational transfer of wealth.
Perhaps most compelling is the value proposition Manhattan now offers. Having largely sidestepped the housing price boom seen from 2020–2024, buyers are finding pockets of opportunity—especially as rental costs continue their near-inevitable annual climb, while mortgage payments remain fixed. For many, owning in Manhattan has never made more long-term financial sense.
Overall, the first quarter showed a real estate market in gradual recovery despite the uncertainty created by the unpredictable new Federal administration. At the top end, activity is particularly strong. Properties priced $4M–10M saw a 47% increase in contracts over February, while those above $10M were up 34%. The Upper East Side is experiencing renewed interest, fueled by luxury developments, private clubs and fine dining. As renovation costs soar and timelines stretch, the appeal of new condominiums continues to grow.
Advice for Buyers: A stable market creates pockets of opportunity for discerning buyers. Be decisive—quality properties are moving quickly. Move-in ready, well-proportioned homes are commanding a premium, while those requiring work linger and often face price reductions.
Advice for Sellers: Price strategically to take advantage of strong conditions. This is not the time for aspirational or market-testing pricing. Given current events, we must consider the possibility that recent market strength may be short-lived. Be responsive—accept solid offers and adjust pricing if initial pricing strategies are falling short.
Wishing you a wonderful Spring season!
Market Snapshot
Although the substantial year-over-year gains of the past are unlikely to return soon, today’s stable real estate market presents an opportunity for discerning buyers to make home choices that hold their value and serve them well for many years to come.
