Heading into summer, Manhattan is doing something subtle but important: properties are selling faster even as the overall pace stays disciplined. Median days on market dropped to 72 days — down 16.3% in a single month — while pending sales jumped 16.3% month-over-month and are up 19.2% over last year. That is a market absorbing inventory efficiently, not one running hot.

Pricing tells the same measured story. The median sale price rose to $1.31M, up 3.2% on the month and 4.8% on the year, while median price per square foot eased back slightly to $1,429. Translation: values are holding and even rising at the median, but buyers are not overpaying on a per-foot basis. Contract activity dipped 2.2% from April yet remains 5.7% ahead of last year — the spring surge is settling into a steady, sustainable rhythm.

The theme heading into June is the same precision we have been tracking all spring: this is not a runaway seller's market — it is a market that rewards preparation, accurate pricing, and timing. The window that exists today will not look the same by August.

— Renée Lee, CFA · Manhattan Real Estate

The value gap between co-ops and condos remains one of Manhattan's most overlooked opportunities. In May, co-op price per square foot sat at $992 — up 3.0% year-over-year — while condo PPSF came in at $1,570, down 1.9% over the same period. That is roughly a 37% per-foot discount for co-op buyers, with co-op values strengthening while condo PPSF softens.

For buyers who can clear a co-op board, the math is compelling: more space and a better address per dollar, in a segment that is gaining rather than losing ground. For sellers, it is a reminder that co-ops are moving — and pricing it to the strengthening trend, not last year's comp, is how you capture this momentum.

The top of the market is holding its ground. Luxury price per square foot climbed to $2,556, up 2.3% on the month and 6.5% on the year — pricing power is intact above $4M. At the same time, luxury listings are selling notably faster, with days on market falling 17% in a single month to 93 days, and months of inventory down nearly 25% year-over-year. With financing costs still elevated, the $4M+ tier is largely insulated — these buyers are disproportionately all-cash or lightly leveraged, so rates barely move their math. That's a big part of why pricing has held.

The nuance: contracts ticked up modestly from April (+2.1%) but sit 7.6% below last spring's pace. The read for high-end clients is "firm but not frantic" — sellers are commanding strong prices and qualified buyers are still transacting, but the breakneck urgency of a year ago has cooled into something more deliberate. For both sides, that makes positioning and pricing strategy the deciding factor.

Luxury buyers still have room to be selective, but they no longer have the luxury of assuming inventory will wait for them.

There's been considerable confusion surrounding New York City's newly enacted pied-à-terre tax, particularly the widely reported "$1 million threshold." The reality is more nuanced.

Beginning July 1, 2026, the tax will generally be calculated using the NYC Department of Finance's assessed value rather than a property's market value. Because assessed values for condos and co-ops are often substantially below actual market prices, many apartments worth well over $1 million may not be impacted during the initial phase of implementation.

The more important development is what comes next. Beginning in July 2028, the city is expected to transition toward a valuation methodology that more closely reflects market values. At that point, the tax is expected to primarily affect non-primary residences valued above approximately $5 million.

For most Manhattan buyers, this is not an immediate issue. For luxury buyers, investors, and owners of second homes, however, it introduces a new consideration into long-term ownership costs. While the tax is not expected to materially affect the overall Manhattan market, it could influence purchasing decisions for some luxury second-home buyers, particularly those comparing New York with other global cities.

For now, the key takeaway is simple: despite headlines suggesting a $1 million trigger, many owners will owe little or nothing during the first phase of the program. The larger question is how future implementation may affect ownership costs for luxury properties beginning in 2028. Questions about how this may affect your property or future purchase plans? Feel free to reach out.

The rental market remains one of Manhattan's strongest fundamentals. The average rent rose to $5,255 in May — up 1.43% on the month and 4.13% over last year — and as rents climb while demand broadens across housing types, income-producing assets remain well-positioned heading into the second half of the year.

The clearest signal is where the growth is concentrated. Value-oriented, non-doorman inventory is dramatically outpacing full-service product — roughly two to three times the year-over-year gain:

For investors evaluating Manhattan rental assets, the signal is clear: demand is broad-based, but the strongest pricing power is emerging in value-oriented product. With financing still expensive, the durability of demand is what supports rent growth and long-term income stability.

And the same value-conscious behavior driving the rental market is showing up in sales. Renters are gravitating toward non-doorman inventory; buyers are finding relative value in co-ops. Across both markets, the through-line is the same — Manhattan consumers are weighing every dollar, and value-oriented product is winning.

The spring market delivered. Contract activity remains well ahead of last year, inventory has tightened across multiple segments, and pricing has continued to firm despite elevated financing costs. The question now is not what happened in spring — it's what happens as Manhattan moves into its seasonal shift.

Historically, July and August bring fewer new listings and fewer active buyers as travel schedules take priority. This year, however, that seasonal pause arrives with inventory already below year-ago levels and buyer demand still absorbing supply efficiently. That creates an unusual setup: activity may cool, but competition for well-positioned properties may not. For sellers, the opportunity is clear. Buyers remain active, inventory remains selective, and pricing power is strongest for properties that enter the market properly prepared and correctly positioned before summer inventory builds.

For buyers and investors, the market remains navigable, but patience is becoming less rewarding. The best opportunities are still available, yet fewer properties are lingering long enough to create extended negotiating leverage.