Manhattan Home Prices Are Holding Steady – But Buyers Are Getting More for Their Money

Written by:

Alejandra Rodriguez

Date:

02 Apr 2026

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In a notable break from tradition, Manhattan’s housing market saw a surge in activity last November, a period that usually marks a seasonal slowdown. Instead of pausing for the holidays, buyers and sellers kept moving. That momentum has carried into the new year — even through winter storms and the typically slow days of January.

Ann Ferguson, principal broker and founder of Ann Ferguson, LLC, has worked in Manhattan real estate for 25 years. She says the timing was unusual. “Usually, we find the fall very busy and then the spring very busy. But this year, it became very busy in November, which is the beginning of the holidays, which has never happened before,” Ferguson says.

What’s Actually Happening

The pace of Manhattan real estate now resembles a typical spring market, not the usual lull of winter. Buyers are actively touring apartments, making offers, and closing deals. Sellers are listing properties and often finding interested buyers within weeks. The frantic bidding wars of 2021 are gone, but so is the stagnation that marked late 2023. Instead, the market has settled into a steady rhythm, with deals happening regularly but without the urgency of the last boom.

Ferguson notes a healthy presence of international buyers, particularly from Asia and Europe, many of whom are paying cash for high-end condos. These buyers are drawn by proximity to work, access to quality schools, and the advantages of owning property in New York’s business and cultural center. “They love New York City for all it has to offer,” Ferguson says, and they are willing to invest significant capital to secure a place here.

For those using financing, conditions have improved. Mortgage rates have dropped from above 7% to around 6%, reducing monthly payments and making ownership possible for buyers who were previously priced out. This change has allowed more people to re-enter the market, especially for co-ops, which remain more affordable than condos.

Why Did Activity Pick Up?

Three main factors have combined to drive this late-year surge:

Interest rates dropped. When mortgage rates hovered near 7.5%, many buyers could not afford the monthly payments, and stricter debt-to-income requirements made approval from co-op boards difficult. Rates closer to 6% have improved affordability, allowing buyers to consider larger or better-located apartments. Ferguson says, “People are now affording more of the size of apartment that they can afford,” which has brought more buyers back into the market.

Political uncertainty eased. The conclusion of the mayoral election in November removed a layer of hesitation that often keeps buyers and sellers on the sidelines. With the election decided, Ferguson observed that “consumers were more confident,” regardless of their views on the outcome. The result was renewed willingness to make major financial decisions.

Inventory increased. More sellers listed properties, expanding buyers’ choices. This shift allowed buyers to compare options across neighborhoods and price points, reducing pressure to bid aggressively or waive contingencies. With more apartments available, negotiating power has shifted from sellers to buyers.

How Quickly Are Deals Closing?

Transactions are moving at a moderate pace — faster than the sluggish months of mid-2023 but slower than the rapid deals of 2021. Cash buyers can sometimes close in under 30 days, while financed purchases, especially for co-ops, take longer due to board approval requirements.

Buyers are taking more time to tour properties and review building financials. Ferguson says they are “not very motivated” to rush, knowing that more inventory is likely to appear. This is a clear change from a few years ago, when hesitation often meant missing out on a faster bidder.

What Should Buyers, Sellers, and Investors Do Now?

If You’re Buying: The current market balance allows buyers to be selective. Tour multiple properties and pay close attention to the financial health and management of each building, not just the apartment itself. Banks are examining building debt and reserves more closely, and buyers should do the same. Get pre-qualified before you start searching so you know your budget and can act quickly when you find the right place. Negotiation is expected — sellers are more flexible, especially if you can close quickly or pay cash.

If You’re Selling: Set a realistic price from the start. Ferguson is seeing “very reasonable sellers” who recognize that the market has shifted. Overpricing will leave your property sitting while buyers look elsewhere. Be ready to negotiate and ensure your building’s financials are in order, as buyers and lenders will scrutinize them. High building debt or deferred maintenance can limit your pool of potential buyers.

If You’re Investing: Look for value in areas like South Harlem and the Upper West Side north of 96th Street, where prices remain accessible, but demand is rising. The Upper East Side also presents opportunities. Ferguson expects prices to rise this spring as more buyers enter the market, so purchasing now could secure a better value. Still, she advises patience — evaluate each property and building carefully to avoid unexpected costs.

What’s Next for Manhattan Real Estate?

Manhattan’s market defied seasonal expectations in November and has remained active into early 2024. Buyers have more choices, sellers are pricing properties realistically, and deals are closing at a healthy pace. Ferguson predicts activity will accelerate in the spring as lower interest rates attract more buyers, likely pushing prices higher. For now, buyers have the advantage, but this may not last. As Ferguson puts it, “The more you wait, the higher you pay.” In a market that’s already showing renewed momentum, acting sooner may be the smarter move.

About the Expert: Ann Ferguson is Principal Broker and Founder of Ann Ferguson, LLC, a boutique brokerage in New York City. With 25 years of experience in Manhattan residential real estate, she focuses on personalized service and long-term client relationships across the city’s diverse neighborhoods.

This article is based on information provided by the expert source cited above. It is intended for general informational purposes only and does not constitute legal, financial, or real estate advice. Readers should conduct their own research and consult qualified professionals before making any real estate or financial decisions.