Manhattan Market Report Q3 2026: Closings Up, Rates 7%+

July 1 to September 30, 2026

In my read of Brown Harris Stevens' latest residential market data, Manhattan closed the third quarter with more sales and faster sales than a year ago. The average apartment price was $2,045,441. That is 2% above the third quarter of 2025 and down from $2,198,818 in the second quarter. The median price, which measures the middle of the market, rose 6% over the year to $1,275,000.

Closings rose 6% to 3,558.

Two notes on the numbers. BHS revises earlier quarters as late-recorded sales come in, so the second quarter now reads $2,198,818 average and $1,300,000 median, against the preliminary $2,231,819 and $1,290,000 in my Q2 2026 report. The third quarter figures here are preliminary and will move in the same way.

Q3 2026 Key Highlights

• •Median sale price: $1,275,000, up 6% year over year
• •Average sale price: $2,045,441, up 2% year over year and down from $2,198,818 in Q2
• •Closings: 3,558, up 6% year over year and the most of the five quarters in the report
• •Resale median price: $1,170,000, up 7%. Resale average: $1,895,196, up 2%
• •Resale apartments spent an average of 87 days on the market, 14% faster than a year ago and the best figure since Q3 2022
• •Resale sellers received 97.8% of their last asking price, also the best since Q3 2022
• •New development average price: $3,022,419, up 2%, with the median up 7%

Prices and Closings

The median rose three times as fast as the average. That gap suggests the middle of the market did most of the work this quarter, while the high end, where inventory is thin, added little.

Volume is where the quarter stands out. The 3,558 closings are the most in the five quarters BHS shows, up from 3,087 in the second quarter and 3,357 a year ago.

By product type, condos and co-ops moved in opposite directions. Condos averaged $2,727,853, up from $2,647,067 a year ago, with a median of $1,800,000 against $1,680,000. Co-ops averaged $1,465,693, down from $1,494,183, with a median of $900,000 against $875,000. These figures include new development and resale.

New Development

The average new development closing was $3,022,419, 2% above last year. The median rose 7% to $1,990,339. Price per square foot averaged $2,093, almost level with the $2,088 of a year ago, so the move in the median says more about which apartments sold than about what each square foot cost.

Downtown south of 14th Street, which includes parts of Tribeca, SoHo and the West Village, accounted for 26.7% of new development closings. No other market area had more.

Resale Apartments

Resale apartments averaged $1,895,196, 2% more than the third quarter of 2025. The median was $1,170,000, up 7%.

Speed and pricing both improved. Resale apartments spent an average of 87 days on the market, 14% fewer than a year ago and the lowest in four years. Sellers received 97.8% of their last asking price, up from 97.3% a year ago and the highest in four years.

Resale Condos

Resale condos averaged $2,535,504, up 5%. More three-bedroom and larger condos sold than a year ago, and that mix drove the gain. Studios were the only size category with a higher average price, up 9% to $723,743.

Resale Co-ops

Resale co-ops averaged $1,452,957, down 4% from $1,512,826. The cause was a sharp drop in sales of luxury three-bedroom and larger apartments. One-bedroom co-ops averaged $773,883 and two-bedrooms $1,582,920, both higher than a year ago. Studios were flat at $466,518.

Fewer luxury sales pulled the co-op average down.

Lofts

Lofts had the strongest year of any category. The average price per square foot was $1,786 against $1,483 a year ago, a gain of about 20%. The median was $1,628 against $1,433, about 14% higher.

Where the Market Moved by Neighborhood

All figures in this section are for resale apartments.

East Side

On the Upper East Side, the two-bedroom median rose 12% to $1,627,000. One-bedrooms gained 8% to $740,000, studios eased 1% to $430,000, and three-bedrooms and larger held at $3,225,000. Condos averaged $1,586 per square foot, 3% more than a year ago.

West Side

The Upper West Side had one size category without a higher median. One-bedrooms slipped to $793,928 from $805,000. Two-bedrooms rose to $1,555,000 and studios to $530,000. Condos averaged $1,638 per square foot, slightly above last year's $1,617.

Midtown

Midtown was the weak spot. Condos averaged $1,375 per square foot, 10% below last year's $1,531. Studios fell to a $399,500 median and two-bedrooms to $1,375,000. Three-bedrooms and larger were the one size category that rose, from $2,180,000 to $2,700,000.

Downtown, 34th to 14th Street

In Chelsea, Flatiron and Gramercy Park, condos averaged $1,800 per square foot, 5% above a year ago. Co-op price per room rose 9% for prewar and 8% for postwar apartments. The two-bedroom median reached $2,150,000, while three-bedrooms and larger dropped to $3,500,000 from $4,300,000.

Downtown, South of 14th Street

Studios were the only size category with a lower median than last year, at $570,000 against $585,000. Two-bedrooms rose to $2,132,500 and three-bedrooms and larger to $4,995,000. Condos averaged $1,918 per square foot, 4% above last year.

Upper Manhattan

Two-bedrooms and larger posted higher medians, with two-bedrooms up 15% to $765,000 and three-bedrooms and larger up 25% to $1,040,000. Studios and one-bedrooms declined. Condos averaged $855 per square foot, slightly below last year's $868.

The Fourth Quarter Outlook

The third quarter looks strong in the rearview mirror. Looking ahead, BHS points to several headwinds. Mortgage rates have risen sharply since March and are back over 7%. Inventory is low in some segments, most notably at the high end. Buyers are also weighing the war in Iran, inflation and the upcoming elections.

Together, those pressures led to a sharp reduction in signed contracts in September.

Closings trail contracts, so fewer contracts signed in September could mean a softer fourth quarter for closings. The third quarter numbers describe deals negotiated earlier in the year, when conditions were friendlier.

What This Means for You

If You're Selling

Resale apartments are selling faster and closer to asking price than at any point since 2022, and that is a good set of numbers to cite. It is also a look backward. Buyers shopping today are looking at rates over 7%, so price a new listing against current contracts as well as recent closings. My pricing strategy guide covers how I choose comparables, and when to sell covers timing.

If You're Buying

A rate above 7% changes your monthly payment more than a 2% move in the average price does. Get the actual number you would be paying before you set a budget, and check the current weekly average mortgage rate from Freddie Mac against what a lender quotes you. My luxury mortgage guide explains jumbo and co-op financing.

With a median of $1,275,000, a typical purchase is already past the $1 million line where New York's mansion tax begins. My mansion and transfer tax guide shows how it adds to closing costs.

Co-ops remain the lower-priced product, with an overall median of $900,000 against $1,800,000 for condos. If you can handle a board package, my condo vs. co-op comparison walks through the tradeoffs.

What I'm Watching

I'm watching three things heading into the fourth quarter.

• •Whether contract signings in October and November recover from September or stay down, since that sets the closings count for the end of the year
• •Mortgage rates around the 7% line, because rates are one of the pressures BHS ties to the September drop in contracts
• •Luxury inventory, which is thin enough that a handful of new listings or closings can move that segment's averages

None of this points to a broken market. It points to a strong quarter behind us and a more cautious one ahead.

If you would like to know what these numbers mean for your building, your budget or your timing, call me at 212.814.9404, email cbain@bhsusa.com or read more about me. You can also browse my current exclusive listings.