How Was the Manhattan Real Estate Market in 2025?

The Manhattan real estate market started off strong in 2025, hit some speed bumps ("Liberation Day" tariffs), but ultimately recovered. It wasn't a great year, but it was a pretty good one - and much better than the previous two. Here are a few observations:

• More buyers were out. They were price-sensitive, and more willing to consider homes that required some renovation than we've seen in the recent past. Lower interest rate contributed.

• Inventory was an issue. The fact that there weren't enough good, appropriately-priced listings available to meet demand caused prices to rise just a bit.

• The high-end of the market ($4M+) was exceptionally active, having one of the best years we've ever seen. The "Mamdani Effect" was a non-starter.

We'll look into this more when Compass' Market Reports are released next week. For now, the feeling within the real estate industry is that 2025 set us up for a busier 2026.