Median price for Manhattan co-ops and condos locked at $1.25 million in the third quarter

The Manhattan median sales price for co-ops and condos remained at $1.25 million in the third quarter, the same record level as the second quarter.

Deals rose for the seventh time in eight quarters, increasing by 8 percent compared to the third quarter of 2025, according to The Real Deal market report by Jonathan Miller.

Listings fell year over year for the fourth time, a drop of 10.7 percent, with the largest declines seen in the luxury and new development markets, the report said. Luxury listings were down 14.1 percent compared to a year ago.

A sharp drop in townhouse listings restrained sales in that segment, Miller’s report said. The average sales price dropped to the lowest level in more than a year, dropping 18.6 percent to $6,331,987.

Lower inventory, high prices

Manhattan prices remained close to spring levels and above last year, according a third quarter market report from Christie’s International Real Estate. This appears to indicate there’s enough demand to overcome seasonal fluctuations “without giving buyers much additional leverage,” wrote Kevelyn Guzman, regional vice president of Christie’s International Real Estate.

“While this is still a selective market, the path to a deal has become clearer for listings that are priced and positioned correctly,” Guzman said.

Rising mortgage rates and other challenges

In her firm’s Manhattan market report, Bess Freedman, CEO of Brown Harris Stevens, noted that the third quarter market was more active than a year ago, but faces a number of challenges.

“Mortgage rates have risen sharply since March and are back over 7 percent,” Freedman said. Low inventory plus concerns about the war in Iran, inflation, and the upcoming elections “led to a sharp reduction in signed contracts in September, which could mean a softer fourth quarter for closings,” she said.

Pied-à-terre tax ‘uncertainty’

Compass also released a Manhattan sales market report, which said that the strongest gains came in the $3 million to $5 million range, where deals increased more than 30 percent for condos and co-ops. Condo sales from $5 million to $10 million also rose by double digits.

The new pied-à-terre tax is “fueling a shift toward condos,” said Nicole Hay, an agent at Compass.

“Co-op boards are extremely wary of the financial and administrative complications this tax could introduce, making them even more restrictive against non-primary residents. Buyers are smart, and they recognize that buying a co-op right now could severely limit their future buyer pool and negatively impact their resale value,” Hay said.

In her firm’s Manhattan market report, Pamela Liebman, president and CEO at The Corcoran Group, said “the tax is already adding another layer of uncertainty for buyers, particularly at the upper end of the market, and at a time when New York City should be focused on encouraging investment, not creating new reasons for people to pause.”

Liebman also commented on a lack of options for buyers. “With available listings and new development inventory both near multi-year lows, buyers are competing for a shrinking pool of homes. Until we see new inventory come to market, limited supply will continue to support pricing and intensify competition for the city’s most desirable properties,” she said.

Limited options for new condos

The new development pipeline appears to be slowing to a trickle. SERHANT’s new development report for Manhattan noted that only 569 sponsor units were listed at the end of the quarter, a 27.7 percent decline year over year. Fewer than 3,000 total units remain unsold.

There were 257 new development contracts signed in in the third quarter, a 36.5 percent decline from this time last year (contract activity is an early indicator of where sales are headed). Midtown East had the most market share with 30.4 percent of contract activity.