Happy First Month of Spring!
For the first time since September 2022, Freddie Mac reports that U.S. mortgage rates have dipped below 6%, ending a three-and-a-half-year stretch above that threshold. Lower rates strengthen purchasing power, revive plans that may have been paused, and bring both buyers and sellers back into the market with renewed confidence. When financing becomes more favorable, activity tends to follow.
That renewed energy is already visible in Manhattan’s luxury market. In the $4 million and above segment, February sales reached impressive levels despite the shorter month. Asking price sales volume climbed to $1.4 billion, up from nearly $955 million in February last year. That is a significant year-over-year gain and a clear sign that high-end buyers are not waiting on the sidelines. Contracts signed on properties priced at $4 million and above rose 16% year over year. Even more striking, contracts over $10 million surged 63% compared to last year. Buyers at the top of the market are acting decisively, which speaks to long-term confidence in Manhattan real estate and its enduring value.
New development is following a similar trajectory. Contracts signed increased by 22%. Median recorded sale prices climbed to $2.65 million from $2.19 million, and price per square foot advanced as well, signaling strengthening demand.
Looking ahead, the Federal Reserve meets March 17-18, with markets pricing in a 98% probability that rates will remain unchanged, while any potential cut later this year will depend on incoming economic data. Despite ongoing geopolitical tensions, the stock market has remained relatively steady, reinforcing a sense of stability as we head further into the spring market.
Taken together, the outlook is encouraging. Rates are easing. Buyers and sellers are re-engaging. The market is moving with greater assurance as we step into the heart of the spring season. If you are considering a move, preparation is everything. The time is now. Lower mortgage rates create opportunity, but those who plan early are the ones who benefit most. A clear strategy, thoughtful pricing, and defined goals will position you to act with confidence when the right property or offer presents itself. 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
Condo contracts held steady year-over-year, with median prices rising 10% to $1.91M from $1.73M. Co-op contracts dipped about 10%, but median prices remained stable at $827K, reflecting selective buyers rather than weakening values.
New listings declined, condos down 30% and co-ops down 36.8%, suggesting some sellers are waiting for greater market clarity, particularly around interest rates and broader economic conditions. The combination of stable pricing and constrained supply positions the market for balanced negotiations as confidence continues to build.
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