Greetings,
Manhattan’s housing market proved resilient this January, refusing to cool off despite freezing temperatures. Activity at the high end of the market outpaced last year, reinforcing growing momentum as we head toward spring.
In January 2026, Manhattan’s luxury market (sales above $4M) recorded 97 signed contracts, a 5.4% year-over-year increase, with a median price of $6.65M. Demand at the top of the market remained strong, with new development playing a key role and accounting for 33% of luxury sales.
Looking ahead, New York City appears poised for a more active-than-usual spring market. Inventory is rising, buyer engagement is picking up, and confidence continues to improve - trends that were already evident during an unusually strong holiday season, as many buyers and sellers began positioning themselves early for the months ahead.
Buyer activity is increasing as interest rate volatility stabilizes and previously sidelined buyers return. Rather than waiting for “perfect” conditions, many are planning strategically for 2026, with well-priced, high-quality listings attracting the most attention.
The Federal Reserve recently held the federal funds rate steady. While markets anticipate a potential rate cut later this year, the Fed remains guided by incoming economic data, with additional clarity expected following the March meeting.
For buyers and sellers considering a move this spring, now is the time to prepare. Early planning can make all the difference in a fast-moving market and help ensure confident decision-making when opportunities arise. Continue reading below for this month’s key market insights, and feel free to contact me with any questions you may have.
All my best,
Iman Bacodari
The Bacodari Team
(646) 226-6084
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