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The new year has brought a mix of momentum and recalibration to the Manhattan real estate market. While median prices continue their upward climb, inventory levels remain relatively stable, and buyers are adapting to evolving market conditions. Here’s a deep dive into the latest trends shaping Manhattan’s housing landscape as we kick off 2025.

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Market Overview

• Median Sale Price: $1,225,000 (▲ 11.4% MoM | ▲ 16.7% YoY)
• Average Sale Price: $2,153,482 (▼ 2.9% MoM | ▲ 8.6% YoY)
• Average Price Per Square Foot: $1,479 (▼ 3.3% MoM | ▲ 3.2% YoY)
• Inventory: 5,797 active listings (▲ 1.3% MoM | ▼ 0.4% YoY)
• Contracts Signed: 688 (▼ 6.1% MoM | ▲ 1.0% YoY)

January’s market data reflects continued resilience in pricing, particularly at the median level, suggesting strong demand for entry and mid-tier properties. However, a slight decline in the average sale price month-over-month hints at a shift toward lower transaction volumes in the ultra-luxury segment.

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Condos vs. Co-Ops: Diverging Paths

• Condos: The average sale price dropped 14.7% month-over-month to $2,591,240, with price per square foot also falling 4.8% to $1,677. While median prices saw a modest increase (▲ 6.4%), signed contracts declined sharply (▼ 19.5% MoM), signaling buyer hesitancy at higher price points.
• Co-Ops: In contrast, the co-op market is heating up. The average sale price surged 17.3% month-over-month, reaching $1,542,326. Inventory remained tight, and signed contracts increased 8.6% MoM, indicating strong buyer demand.

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Luxury Market Trends

The luxury segment—homes priced at $5M and above—saw a mixed performance. While high-end condo sales softened, townhouses made a strong comeback, with contracts signed jumping 28.6% MoM. Still, townhouse median prices saw a steep 36.3% monthly decline, reinforcing a buyer-favorable climate in this category.

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Neighborhood Insights

• Downtown & Upper East Side: These two neighborhoods accounted for the largest share of transactions, making up 25% and 23% of total sales, respectively.
• Midtown & Upper Manhattan: Both saw relative stability in inventory but lower contract activity compared to previous months.
• Financial District/Battery Park: This segment continues to underperform, capturing just 4% of signed contracts.

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Key Takeaways for Buyers & Sellers

• Buyers: With luxury price adjustments and steady inventory levels, there’s room for negotiation, particularly in high-end condos and townhouses.
• Sellers: Properties priced at or below the median range are moving faster, so competitive pricing is key to securing buyers quickly.

As we progress through Q1 2025, all eyes will be on interest rates and broader economic trends that could shape buyer sentiment in the coming months. Stay tuned for next month’s update as we continue tracking Manhattan’s dynamic market.

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