Greetings,
As fall settles over the city, Manhattan’s real estate market remains steady and well-balanced. While buyers and sellers continue to adjust to today’s borrowing environment, recent shifts in interest rates are creating new opportunities on both sides of the table.
The Federal Reserve’s latest rate cut won’t immediately lower mortgage payments for homeowners, but it could pave the way for more favorable borrowing conditions as rates continue to ease. According to Freddie Mac, mortgage rates are now at their lowest level in more than a year. At the start of 2025, the 30-year fixed-rate mortgage stood above 7%; today, it is nearly a full percentage point lower - a welcome shift that may help support renewed activity heading into winter.
Market activity has slowed slightly from last year but remains steady. Q3 data shows mild cooling compared to 2024: condo sales volume dipped, while co-op transactions rose. Prices held firm, with condo medians easing from $1.70M to $1.54M, and co-op medians edging up from $861K to $871K. Price per square foot stayed consistent, showing stability rather than decline.
In the luxury market ($4M–$10M), 245 sales closed in Q3 2025, down 7.9% from a year earlier. Homes spent an average of 140 days on the market, up 13.8%, as buyers took more time to decide.
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
