Despite international, political, and economic uncertainty, Manhattan’s real estate market made a comeback in Q1 2025. Properties in contract are up 8% compared to Q1 last year. Buyers showed renewed faith in high-end real estate, demonstrating that long-term investments are still in demand.
The luxury sector surged, with sales of $5M+ properties jumping nearly 50% year-over-year. The ultra-luxury tier, properties over $20M, recorded their strongest sales in 6 years. Despite the uptick in activity, tight inventory continues to put pressure on the market. This is becoming a years-long trend, though the 13% increase in properties for sale from February to March is a sign that a busy spring market is approaching.
Conversely, the $1M–$3M range saw a 10% decline in signed contracts compared to Q1 last year. These buyers are more sensitive to market shifts, and may wait for things to settle down before making a purchase. The sub $500k market held firm, showing some buyers have grown comfortable with mortgage rates between 6-7%. They are prepared to move forward with a purchase when the timing is right for them personally.
Overall, the market remains active. Inventory is up compared to last year, offering buyers more options. As summer approaches, the strength of the luxury sector and the enduring appeal of city life support a dynamic market, even in the face of global economic uncertainty.
Best Wishes,
Boris Fabrikant, Esq. and Collin Bond, Esq.
