Residential Real Estate News
Manhattan Housing Slump Deepens in Q1, Luxury Demand Stands Out
Manhattan's residential market proved resilient in the first quarter of 2026 despite severe winter storms, weaker sentiment and a sharp drop in new listings, with luxury properties helping soften the slowdown, according to the Compass Q1 2026 Manhattan Market Report.
Total residential sales fell 3.2% from a year earlier to 2,279, while contracts signed slipped 6.7%, according to the report. The decline was described as modest given the combination of weather disruption, geopolitical uncertainty, stock market volatility and limited inventory.
Supply was the clearest constraint. Overall inventory fell 5.4% year over year, while new listings dropped 17.5%, with the steepest shortages in co-ops. The report said sellers had little incentive to cut prices aggressively, helped by expectations for interest-rate cuts and continuing demand for well-located properties.
Prices generally held firm. The median sales price rose 8.5% from a year earlier to $1.275 million, while the average sales price increased 2.0% to $2.24 million. Average price per square foot edged down 0.6% to $1,554, suggesting the market's upper end outperformed even as broader activity softened.
Compass also reports that luxury strength stood out. Contracts for homes priced between $10 million and $20 million jumped 47.4% from a year earlier, while ultra-luxury condo sales rose 30.0%. The report said wealthy buyers continue to view Manhattan as a long-term haven, though activity shifted away from the $30 million trophy deals that defined much of 2025 toward the $20 million to $30 million bracket.
By property type, condos outperformed co-ops on pricing but saw fewer transactions. Condo closings fell 1.3% to 1,047, while the average condo price climbed 2.7% to $3.13 million. Co-op sales dropped 4.7% to 1,232, with the average price down 0.8% to $1.48 million. Signed contracts were weaker across both segments, but asking prices moved higher, indicating sellers remained firm.
Submarket data showed the Upper East Side remained the largest co-op hub, while the Upper West Side showed pockets of strength. Downtown Manhattan stood out for its higher pricing, with median condo prices at $2.995 million and median co-op prices at $982,500. Midtown West was softer on volume, but co-op median prices there rose 40.2% from a year earlier.
Townhouse activity was mixed but expensive. Manhattan recorded 191 townhouse sales year to date, down 2.1% from the same period last year, while the median sale price slipped 3.3% to $9.94 million. The average price rose 3.1% to $13.99 million, reflecting several high-end deals.
The Compass report said the market should stabilize as spring inventory comes in, though rates and broader economic conditions will continue to influence buyer sentiment. For now, Manhattan housing is heading into the second quarter with fewer listings, resilient luxury demand and a cautious but active buyer pool.
