Manhattan real estate performed better than many expected in the second quarter of 2026: the market signed 3,477 contracts, up 5% year over year and the most for a second quarter in four years, despite elevated mortgage rates, economic and political uncertainty, and the new pied-à-terre tax. Closed sales fell 7% to 3,042, reflecting a slow winter, while the median sale price rose 7% to $1.3 million, its sixth consecutive quarterly increase. Below, I cover sales, prices, inventory, and luxury activity in the second quarter of 2026, how the major brokerage reports compare, and what the quarter meant for Manhattan buyers and sellers.
How Many Contracts Did Manhattan Sign in Q2 2026?
Signed contracts rose 5% year over year to 3,477, the highest second-quarter total in four years, according to Corcoran and our own data. Buyer confidence returned in the spring, especially for well-priced, well-presented homes in desirable neighborhoods.
Why Did Closed Sales Fall While Contracts Rose?
Closed sales fell 7% to 3,042 because closings lag contracts by months, so they mostly reflect slow contract activity over the winter. Miller Samuel’s data showed a similar 6.3% decline. Signed contracts are the better indicator of current demand, and they were up.
What Was the Median Manhattan Apartment Price in Q2 2026?
$1.3 million, up 7% and the sixth consecutive quarterly increase, according to Corcoran. Miller Samuel reported $1.25 million, up 4.2%. Average price per square foot reached $1,882, up 1% and the strongest second-quarter level in eight years.
How Has the Pied-à-Terre Tax Affected Manhattan Luxury Sales?
Activity above $5 million softened after the tax was announced, most sharply at the ultra-luxury end, yet contracts above $5 million still rose 5% and contracts above $3 million rose 17%, according to Corcoran. New York City’s surcharge on non-primary residences valued at $5 million or more took effect July 1, 2026. Luxury buyers are treating Manhattan real estate as a long-term investment even with higher carrying costs.
Is Manhattan Inventory Still Shrinking?
Yes. Corcoran reported 7,182 active listings, down 2% and the lowest second-quarter inventory in eight years. New listings fell 4%, and new-development launches dropped 37% to 160 units. Average marketing time was 115 days, the eighth straight quarter below the prior year’s level.
How Do the Brokerage Reports Compare for Q2 2026?
Each brokerage counts sales differently, so the figures in each firm’s Q2 2026 report differ. Year-over-year changes are in parentheses.
| Metric | Corcoran | Miller Samuel (via Brick Underground) |
|---|---|---|
| Signed contracts | 3,477 (+5% YoY) | Not reported |
| Closed sales | -7% YoY | -6.3% YoY |
| Median sale price | $1.3 million (+7%) | $1.25 million (+4.2%) |
| Average sale price | +6% YoY | Not reported |
| Average price per sq ft | +1% YoY | Not reported |
| Days on market | 115 | Not reported |
| Active listings | 7,182 (-2%) | Listings -15% YoY |
| New listings | -4% YoY | Not reported |
What Are the Risks for Manhattan in the Second Half of 2026?
The risks to watch are the pied-à-terre tax at the high end, scarce inventory in top buildings, a thinner new-development pipeline, and broader economic effects on confidence. Sales under $2 million fell 11%, according to Corcoran, and overpriced homes continued to lag.
What Did Q2 2026 Mean for Manhattan Buyers and Sellers?
The closed-sales headline looked soft, but contracts tell you where the market is going, and they were up. I expect an active second half of 2026, especially for well-priced, well-presented homes in desirable neighborhoods.
Limited inventory and a shrinking development pipeline keep pricing on the sellers’ side. Homes that are priced right and presented well are moving faster. If you are planning a move, the time to prepare is before the fall market, not during it.
What Results Has The Michael J. Franco Team Delivered?
Through Q2 2026, my team represented 51 buyers and sellers with well in excess of $100 million in closed and pending volume. Who you work with matters.
What is driving the Manhattan market right now? In this video, I break down the four fundamentals behind the sales that succeeded this spring.
If you are thinking about buying or selling in Manhattan, request a confidential consultation and I will walk you through what the latest numbers mean for your home. For the newest edition, read the Q3 2026 Franco Report, and sign up for The Franco Report newsletter to get each quarter first.
About the author. Michael J. Franco is a top producing broker at Compass with more than 20 years of experience as a broker, attorney, and investor. The Wall Street Journal and Real Trends ranked him number 13 in Manhattan and number 100 in the United States.
This post is for general information and is not financial, legal, or tax advice. Compass is a licensed real estate broker. Equal Housing Opportunity.
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