Hi Carol,
The Manhattan luxury market entered its expected summer slowdown last week, with contract activity declining 37% due to the July 4th holiday and the start of the traditionally quieter July-August season. However, the broader picture tells a different story: June 2025 contracts rose 11% over June 2024, and Q2 sales above $5M surged 20.2% from the first quarter - signaling that momentum is building beneath the surface.
As activity slows in July, serious buyers and strategic sellers have a unique window to reposition and prepare for the fall. These next few weeks are not idle — they are pivotal.
Market Snapshot | Week of June 30 - July 6, 2025
- Contracts Signed: 19 (down 37% vs. prior week: 30)
- Sales Volume: $184,444,990 (down 22% vs. prior week: $236M)
- New Listings: 17 (down 53% vs. prior week: 36)
- Off-Market Listings: 38 (up 104% vs. prior week: 18)
- New Development Contracts: 4 (21% of weekly total)
June 2025 vs. June 2024
-
Total Contracts Signed: 160 (up 11%)
-
Total New Listings: 160 (down 15%)
-
Off-Market Listings: 170 (up 25%)
Manhattan Luxury Q2 2025 Highlights
The second quarter delivered strong results in Manhattan's luxury market,
underscoring renewed buyer engagement and a tightening inventory landscape:
- Luxury sales above $5M rose 20.2% vs. Q1 2025
- Year-over-year, luxury sales increased 18%
- Inventory declined across both resale and new development sectors
- 78% of S3M and over properties were all cash sales
These Q2 gains reflect more than seasonal momentum-they suggest sustained confidence at the high end of the market, especially in the S5M-$10M and S10M+ tiers.
Market Indicators
$4M+ Segment
- Market Pulse: 2.65
- Down 0.9 pts MoM I Up 1.7 pts YoY
- Climate Index: 0.86
- Down 40.7% MoM I Down 10.4% YoY
The Market Pulse reflects supply vs. demand conditions. The Climate Index gauges seller leverage and pricing power.
Property Type Breakdown
- Condos: 14 contracts (74%)
- Co-ops: 4 contracts (21%)
- Townhouses: 1 contract (5%)
Neighborhood Performance
- Downtown: 7 contracts (37%)
- Upper East Side: 6 contracis (32%)
- Midtown: 5 contracts (26%)
- Upper West Side: 1 contact(5)
New Development | Week of June 30 – July 6, 2025
- 4 contracts signed
- 21% of total weekly market share
New development continues to appeal to high-net-worth buyers seeking design-forward, move-in-ready product. The segment remains competitive even during summer, particularly in top-tier buildings with compelling views and amenities.
Pricing & Negotiability
- 10 contracts included price reductions
- 53% of all contracts signed
- Median discount: 6.5%
More than half of the signed contracts last week involved price reductions. In this environment, properties that are priced in line with market reality are the
ones that are trading. Strategic pricing isn’t optional—it’s essential.
Ultra-Luxury Market: $10M+ Segment
The $10M+ segment posted a strong performance last week with 5 signed contracts, representing 26% of the market—a commanding share for this tier.
- Market Pulse: 3.7
- Climate Index: 0.72 — down 15.3% month-over-month and 22.6% year-over-year
With the wealth they’ve built in the fnancial markets, ultra-high-net-worth buyers are moving forward on ultra-luxury properties when the value, design, and positioning are compelling.
Second Quarter Spotlight:
Q2 2025 marked a record-setting quarter for $10M+ sales in Manhattan, driven by confdent, affuent local and national buyers seizing prime opportunities.
#1 – 109 East 79th Street PH16
New Development Condo | Upper East Side
Asking: $34.9M
5 Beds | 5.5 Baths | 6,548 SF
$5,329 PPSF | 384 Days on Market
#2 – 217 West 57th Street #62E | Central Park Tower
New Development Condo | Billionaire’s Row Asking: $18.9M
3 Beds | 3.5 Baths | 3,364 SF
$5,618 PPSF
Macro View
Mortgage rates fell for the ffth consecutive week, now averaging 6.5% Rate trajectory will depend on the Fed’s interpretation of upcoming economic data. Resale and new development inventory continues to tighten across the board.
Seller Strategy | Get Ahead of the Fall Market
If your property has been on the market without offers, this is the time to pause, reassess, and re-enter strategically in September with refreshed marketing, revised staging, and proper pricing.
If you’re planning to sell, preparing now ensures you’ll launch strong in September—just ahead of your competition. Renovated properties continue to outperform. Buyers are discounting homes with renovations more than 10 years old, and pricing should refect that.
Buyer Strategy | Use the Summer to Your Advantage
The next six to eight weeks offer a tactical window. With fewer active buyers in the market, motivated sellers are more likely to negotiate—especially on listings that have been sitting 100+ days or recently adjusted their pricing.
Some new developments are quietly fexing to get deals done—offering negotiability on price, transfer taxes, or closing incentives. These concessions are rarely advertised and available only to buyers working with well-connected advisors.
Some co-ops are also offering greater fexibility, easing restrictions on renovations, work hours, and even fnancing in select cases. Buyers who may have previously ruled out co-ops should revisit them—there may be untapped value.
Final Thoughts
While the early July lull was expected, the broader market remains active and promising. June 2025 outpaced June 2024 in signed contracts, and Q2’s strength confirms confidence is returning—especially in the $5M+ and $10M+ tiers.
For personalized insights or a custom report on your property, building, or neighborhood, reach out today. Let’s make your real estate goals a reality. Until next week,
Warm regards,
Carol
Carol Staab
Global Real Estate Advisor
Sotheby's International Realty..
650 Madison Avenue
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