August 06, 2025
In today’s Manhattan real estate market, there are really two stories playing out — and only one of them is writing big checks.
While most buyers are sitting on the sidelines thanks to high mortgage rates and economic uncertainty, cash buyers have taken over the game. According to Miller Samuel’s latest quarterly report for Douglas Elliman, a staggering 69% of Manhattan home purchases in Q2 2025 were all-cash deals — the highest share ever recorded.
This isn’t your average home shopper. These are luxury buyers, many tied to Wall Street or flush with generational wealth, who don’t need a bank to make their move. With financing costs high and interest rates still unappealing, cash has become the ultimate advantage — and it’s completely reshaping the city’s high-end market.
At the top end of the market, it’s business as usual — or even better than usual. Luxury properties, defined as the top 10% of sales (starting at $4.5M), saw closed sales jump 18% year-over-year.
Median prices hit $6.52 million, and the already limited inventory in this segment shrank by 21%. Long-stagnant listings are finally moving, and luxury brokers are reporting their busiest spring in six years.
Meanwhile, the rest of the market is still dragging its feet. Regular buyers — the ones who rely on financing — are facing tougher lending conditions, cautious decision-making, and an overall climate of hesitation.
Yes, transactions rose 16% across Manhattan compared to last year, but prices barely budged, inching up just under 2% to a median of $1.2 million. Inventory is up slightly, but not enough to balance affordability.
There’s a clear divide here: the luxury market is flying high, and the rest of Manhattan is just trying to keep up.
Will the cash wave continue into the summer? That’s the big question. Some signs point to a potential cooling in Q3, especially with market volatility rising post-tariffs and more global uncertainty creeping in.
But historically, Manhattan real estate — especially the luxury end — has been seen as a safe haven for wealth. And when you’ve got cash in hand, timing matters less.
For now, the upper crust is holding this market together.
Disclaimer: This content is meant for informational purposes only and is not intended to be construed as financial, tax, legal, or insurance advice.
