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Matteo's Insights
Overall Manhattan Market Update: APRIL 2025
After years of extremes, Manhattan’s residential real estate market has settled into a rhythm of average—and that’s a good thing. Following the post-COVID surge from summer 2020 to spring 2022, and the prolonged slowdown in transaction volume that stretched from mid-2022 through late 2024, the city is now experiencing a healthier, more sustainable market pace. For the second consecutive month, key metrics are aligning with long-term seasonal norms, suggesting the market has finally found its footing.
In March, over 2,000 new listings came to market—a 44% increase over February and 15% higher than the same period last year. That supply increase was matched by demand: the number of signed contracts jumped nearly 30% month-over-month, with a solid 11% gain year-over-year. These figures reflect not a frenzied boom, but a return to baseline—a market functioning at average velocity after years of either hyperactivity or hesitation.
Crucially, buyers are no longer sitting on the sidelines waiting for a mythical “perfect moment” or interest rate. Today’s consumers are transacting based on real-life milestones—job changes, family needs, or long-term investment goals. That shift in mindset is fueling a steadier market cadence, underpinned by confidence and pragmatism rather than speculation or fear.
Still, while the market data skews in favor of sellers—rising prices, declining listing discounts and more bidding wars—this is not a universally strong seller’s market. In fact, the current environment could best be described as punishingly efficient. A majority of the demand is chasing a minority of the listings—those that are well-priced, well-presented, and check all the proverbial boxes for buyers. These properties are seeing multiple offers, sometimes above ask. The rest? They’re sitting, adjusting prices, or being overlooked altogether.
The median price per square foot rose 1.3% in March to $1,397, with a 6.2% gain year-over-year—yet the median listing discount remains at 5%. Nearly 22% of sales closed at or above asking, illustrating how accurate pricing and strategic presentation can still yield premium results, even in a normalized market. Meanwhile, the rental market tells a similar story: median rents hit $4,500 in February, up 6.4% from last year, and nearly 1 in 4 rentals faced a bidding war.
A clear divide is emerging between the homes that are commanding attention—and those that aren’t. Properties that deliver on value, layout, design, and lifestyle are moving quickly, often at or above asking. Meanwhile, listings that miss the mark are being met with indifference, forcing price reductions or extended time on market. Today’s buyers are decisive, but not desperate. For them, negotiating leverage exists—but mostly on inventory that’s overpriced, underwhelming, or poorly positioned. For sellers, success hinges not on luck, but on precision: strategic pricing, compelling presentation, and a deep understanding of what today’s buyers truly want.
As we progress further into the spring season, the tone of the market is neither euphoric nor uncertain—it’s disciplined. Manhattan is no longer lurching between highs and lows. It’s operating with the poise of a mature, balanced market, fueled by real demand and pragmatic decision-making. In a city long defined by extremes, this return to measured, rational momentum may be the most promising shift of all.
Source: Elegran Real Estate
What are NYC's Most Expensive Neighborhoods?
In the first quarter of 2025, New York City's real estate market exhibited notable shifts, with Hudson Yards maintaining its position as the city's most expensive neighborhood. According to PropertyShark's report, Hudson Yards achieved a median sale price of $7.13 million, marking its sixth consecutive year at the top. This dominance is attributed to a limited number of high-value transactions, including $8 million sales at 32 Prince Street and the Puck Building.
Little Italy made a significant comeback, securing the No. 2 spot with a median sale price of $4.6 million across seven transactions. This resurgence was driven by high-end condo sales, reflecting the neighborhood's appeal to luxury buyers.
Hudson Square experienced substantial growth, ranking fifth with a median sale price of $2.6 million—a 61% increase from the previous year. This surge is attributed to a shift toward condominium sales and the area's ongoing transformation, bolstered by the presence of corporate giants like Google and Disney.
Conversely, some traditionally expensive neighborhoods experienced declines. Flatiron and Chelsea both fell to 19th place, each with a median sale price of $1.4 million. Carroll Gardens dropped out of the top 10, also settling at 18th place with a similar median price.
Overall, the city's median sale price across all five boroughs rose to $768,000, a 10% increase from the first quarter of 2024. The number of deals also grew from approximately 6,500 to 7,200 during the same period, indicating a robust start to the year for New York City's real estate market.
These trends highlight the dynamic nature of New York City's real estate landscape, with certain neighborhoods experiencing significant growth due to high-end developments and corporate investments, while others face challenges in maintaining their market positions.
Source: TheRealDeal
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