The Manhattan luxury real estate market is defying expectations this fall. Despite a significant decline in available inventory, October 2025 delivered the second-strongest performance in a decade for properties priced above $5 million. If you're considering buying or selling luxury real estate in Manhattan, understanding these market dynamics is crucial for making informed decisions.

Record-Breaking October Activity Despite Limited Supply

October 2025 saw 90 contracts signed for properties over $5 million, representing a 13% increase compared to October 2024. This marks the second-highest October total since 2015, signaling robust demand in Manhattan's luxury segment.

What makes this achievement particularly noteworthy is that it occurred against a backdrop of shrinking inventory. The strong performance was primarily driven by resale activity, as existing homeowners capitalized on favorable market conditions to list their properties.

Inventory Shortage Creates Competitive Market Conditions

The Manhattan luxury market is experiencing a significant supply constraint. Active listings fell 9% year-over-year, with properties priced at $5 million and above dropping to just 877 active listings—the lowest October total since 2013.

This inventory shortage has created several key market dynamics:

• Increased competition among qualified buyers for premium properties
• Faster transaction timelines as buyers move quickly on desirable listings
• Stronger negotiating position for sellers with well-positioned properties
• Premium pricing for properties in sought-after locations and buildings

Properties Are Selling Faster Than Ever

Days on market declined by 8% year-over-year in October 2025, indicating that luxury properties are moving more quickly than in the previous year. The reduction was particularly driven by fewer properties languishing on the market for over a year compared to October 2024.

This acceleration in sales velocity suggests that:

• Properly priced luxury properties are finding buyers efficiently
• The pool of qualified buyers remains active and decisive
• Market confidence in Manhattan luxury real estate is strengthening
• Sellers who price strategically are being rewarded with quicker sales

Price Per Square Foot Trends Tell a Nuanced Story

The average asking price per square foot rose 4% annually to $3,274 in October 2025. However, this headline number deserves closer examination.

The Billionaire's Row Effect

The year-over-year gain was significantly boosted by contracts on Billionaire's Row properties commanding over $7,000 per square foot. These ultra-luxury developments—concentrated along 57th Street and nearby areas—represent the pinnacle of Manhattan luxury living.

The Broader Market Picture

When excluding Billionaire's Row sales, the average price per square foot actually fell 5% annually. This indicates a bifurcated market where:

• Ultra-luxury tier (Billionaire's Row and comparable): Strong price appreciation driven by limited supply and international buyer interest
• Luxury tier ($5M-$15M): More moderate pricing with values adjusting based on location, condition, and building amenities
• Entry luxury tier ($5M-$8M): Increased price sensitivity as buyers carefully evaluate value

What This Means for Luxury Buyers

If you're in the market for a Manhattan luxury property, here's what you need to know:

Move Quickly on the Right Property

With inventory at a 12-year low and days on market declining, qualified buyers need to be prepared to act decisively when they find a property that meets their criteria. The days of extended deliberation are over in this market.

Be Strategic About Location

Not all Manhattan neighborhoods are experiencing the same trends. Understanding micro-market dynamics—building quality, neighborhood amenities, school districts, and transportation access—is more important than ever.

Consider Properties Priced for the Market

While some sellers maintain aspirational pricing, properties priced at or slightly below comparable sales are moving quickly. Working with an experienced broker who understands current market conditions can help you identify opportunities.

Look Beyond Billionaire's Row for Value

For buyers focused on value rather than ultra-luxury cachet, exploring properties outside the Billionaire's Row corridor may offer better price per square foot metrics while still delivering exceptional quality of life.

What This Means for Luxury Sellers

If you're considering selling your Manhattan luxury property, current market conditions offer several advantages:

Inventory Shortage Works in Your Favor

With active listings at their lowest October level since 2013, properly positioned properties face less competition and attract serious buyers more quickly.

Pricing Strategy Is Critical

While the market is strong, the 8% decline in days on market suggests that overpricing can still result in extended listing periods. Work with your broker to establish a pricing strategy based on recent comparable sales and current market absorption rates.

Presentation Matters More Than Ever

In a market where buyers can be selective, ensuring your property shows at its absolute best—through professional staging, photography, and targeted marketing—can make the difference between a quick sale and a prolonged listing period.

Timing May Be Optimal

With resale activity driving October's strong performance, market sentiment appears favorable for sellers. However, inventory constraints mean you'll also need to consider your next move carefully if you plan to remain in Manhattan.

Looking Ahead: Market Outlook

Several factors will influence the Manhattan luxury market in coming months:

• Interest rate environment: Federal Reserve policy decisions will continue to impact buyer financing costs
• New development pipeline: Several high-profile projects approaching completion could add to supply
• Economic conditions: Broader economic trends, including stock market performance and employment in high-paying sectors
• International buyer activity: Currency exchange rates and global economic conditions affecting foreign investment

Work With Market Experts

Navigating Manhattan's luxury real estate market requires deep expertise and current market knowledge. Whether you're buying or selling, partnering with experienced professionals who understand neighborhood-specific trends, building quality variations, and negotiation strategies is essential.

The October 2025 market data reveals a complex landscape where inventory constraints are creating opportunities for sellers while demanding strategic thinking from buyers. Success in this environment requires more than just financial resources—it demands market insight, decisive action, and expert guidance.

About This Report: Data sourced from Corcoran's October 2025 Manhattan Luxury Market Report, analyzing contracts over $5 million.

Looking to buy or sell luxury real estate in Manhattan? Contact us today to discuss how current market conditions create opportunities for your specific situation. Our team provides expert guidance backed by comprehensive market data and decades of Manhattan luxury market experience