- Manhattan co-op and condo sales climbed 17% year-over-year in Q2, marking the highest volume in nearly two years.
- All-cash deals soared 23% and accounted for a record 69% of all purchases, as buyers sought to sidestep market volatility and mortgage constraints.
- The top 10% of transactions drove much of the growth, with luxury sales up 18% and the median luxury price rising nearly 9% to $6.5M.
Cash Over Credit
Despite headwinds from President Trump’s tariff-driven trade policies, cash buyers powered the Q2 rebound in Manhattan sales, per Bloomberg. Of the more than 3,000 deals closed during the quarter, nearly seven out of ten were cash transactions — the highest share on record. These buyers, less affected by financial uncertainty, helped lift overall market confidence and activity.
Prices Hold Steady
The median sale price for co-ops and condos ticked up 1.6% to $1.2M. While not a dramatic increase, the gain indicates relative price stability amid broader economic concerns, including trade tensions and inflation fears.
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Luxury Leads the Charge
The luxury segment — defined as the top 10% of sales — outpaced the overall market in both volume and pricing. Transactions in this tier jumped 18%, while the median price rose to just over $6.5M, an 8.8% year-over-year increase. This resilience in Manhattan sales reflects continued demand from high-net-worth individuals with the means to bypass mortgage markets entirely.
Financing Jitters
Buyers relying on mortgages showed more caution. Mortgage-backed purchases rose just 5.7%, and nearly 81% of those included financing contingencies — allowing buyers to walk away if loans weren’t approved. That’s the second-highest level in a decade, underscoring growing wariness among credit-dependent buyers.
Looking Ahead
While Q2 sales reflect market sentiment from earlier in the year — including April’s rollout of Trump’s “Liberation Day” tariffs — more current data on contract signings show continued momentum. Contracts rose 7.6% in June compared to a year earlier, marking the 12th consecutive annual increase. In the luxury segment, contracts surged 32%, signaling strong near-term demand.
Why It Matters
The strong showing for Manhattan real estate — particularly in the luxury and cash-buyer segments — highlights the bifurcation of the market. While affluent buyers push forward, uncertainty and tighter financing conditions continue to challenge the broader buyer pool. For developers and brokers, catering to this resilient high-end demand may prove key in the months ahead.
