The Manhattan real estate market saw an astronomical increase in cash sales for apartments in 2025. Sixty-four percent of co-op and condo sales were completed in cash last year.
Increase in cash sales for Manhattan real estate
“Cash has long played a significant role in the Manhattan real estate market, historically accounting for about half of all sales,” Jonathan J. Miller, president of Miller Samuel Real Estate Appraisers and Consultants said in a recent statement to the New York Times (NYT) Ninety percent of Manhattan sales over $3 million were paid in cash.
As a result of the Federal Reserve raising interesting rates due to inflation, eligible buyers are paying the full amount upfront for homes. Sixty-one percent of Manhattan apartment sales were paid in cash in 2024.
A report by Douglas Elliman revealed that Manhattan co-ops and condos crept up 2.3% in the fourth quarter of 2025 to $1.125 million from the same time a year earlier, while inventory slipped by 4.4%.
Wall street success leads to an increase in purchasing property
Wealthy New Yorkers are eager to purchase property in Manhattan as Wall Street reached record profits in a risking stock market. The fourth quarter of 2025 revealed Manhattan co-ops and condos over $4 million increased 11.2% percent.
Similar reports were also confirmed in Los Angeles, Palm Beach, Florida, and Miami.
Mortgage rate continues to drop
In the last week of December, the 30-year mortgage rate dropped to 6.15%. Buyers needing a mortgage are advised to pursue a Manhattan co-op, at about half the price of a condo. Manhattan co-op sales rose 7% from the same time in 2024.
With the victory of mayor Zohran Mamdani, some speculated a mass departure of wealthy New Yorkers. Kevelyn Guzman, regional vice president of Coldwell Banker Warburg, said, “We heard a lot of fearmongering happening, but it was not reflected in our numbers.” There was no sudden spike in inventory or sales indicated in the fourth quarter.
The 2026 Manhattan market is expected to stay consistent with the 2025 sales as long as interest rates decline.
