August 29, 2025
You’d think with all the political drama and economic noise happening in New York City, the real estate market would be on its knees. But guess what? Manhattan isn’t folding. In fact, Q2 sales came in strong, defying the gloomy mood within the real estate community.
While a lot of agents are feeling the pressure (and understandably so with talks of rent freezes and new tax bills), buyers and sellers seem to be moving to their own beat. Manhattan home sales surged 16.6% year-over-year—the highest level we’ve seen in nearly two years. This isn’t wishful thinking; this is actual, on-the-ground data.
One stat that really jumps out is the cash sales. A record-breaking 69.1% of Manhattan deals closed in cash last quarter. With mortgage rates hovering just under 7% and no real relief in sight from the Fed, buyers with cash are stepping in and keeping the market alive. Cash sales were up 23.1% annually, outpacing financed deals, which only rose by 5.3%.
Even with all this activity, inventory levels are pretty average. Listings saw a modest 3.1% annual gain, but keep in mind, firms like Compass are increasingly pushing private (off-market) listings, so the true supply might be a little foggier than what the public sees.
Luxury took a bit of a hit, with listings in that segment falling 21.2%, but ironically, it’s the high-end buyers—who are less dependent on financing—that are keeping the sales numbers afloat. Manhattan’s median sale price stood at $1.2 million, way above the national median of $369,000.
One thing to watch: mortgage rates. Even if the Fed does decide to cut rates later this year, don’t expect a sudden drop in mortgage costs. Rate cuts might fuel more inflation before they ease financing conditions. For now, the buyers who can move fastest are those not relying on traditional financing.
In the end, while NYC’s political scene may be rattling nerves, Manhattan’s real estate market is showing it can handle the turbulence. Buyers are still willing to pay a premium for the right properties, and sellers who price realistically are getting deals done.
Disclaimer: This content is meant for informational purposes only and is not intended to be construed as financial, tax, legal, or insurance advice.
