Where the Manhattan market stands
Prices kept rising. Miller Samuel and Douglas Elliman put the median sale price at $1,250,000, a record and about 4.2 percent above a year earlier, the sixth straight quarter of year-over-year gains; the average sale price was about $2.11 million. Corcoran, which measures the quarter slightly differently, has the median at $1.3 million, up 7 percent, the second-highest level it has recorded.
Activity split by price. Closed sales fell about 6 percent year over year (Miller Samuel / Elliman), and Corcoran counts sales under $2 million down 11 percent while sales above $2 million rose 4 percent. Signed contracts, the forward-looking number, reached 3,477, up 5 percent and the highest second-quarter total in five years (Corcoran). Supply stayed thin: listings ran about 15 percent below a year ago by Miller Samuel's count, and Corcoran's active inventory of 7,182 was the lowest for a second quarter in eight years.
Co-ops had their turn. The Manhattan co-op median rose 8.5 percent year over year to $895,000, ahead of condos at about 3 percent (TRD Data, from recorded sales). Brown Harris Stevens reports the average co-op resale price up 9 percent to about $1.55 million, while resale condos averaged 5 percent less than a year ago, partly because fewer apartments closed above $20 million.
The new pied-à-terre surcharge
On July 1, 2026, New York's first surcharge on second homes took effect (Tax Law Article 30-C, enacted in the state budget on May 26). It applies each year to a condominium or co-op that is not its owner's primary residence when the Department of Finance values it at $1 million or more, and to one-to-three-family houses valued at $5 million or more. For condos and co-ops the rates run from 4 percent to 6.5 percent by value band. A primary residence, a bona fide tenant's home, and unsold sponsor units are exempt. The city bills the owner, and co-op boards pass it on to the shareholder.
Two things matter most. The value that counts is the Department of Finance's own figure, not the sale price, and it is usually lower than what an apartment sells for, so check the city's eligibility tool at nyc.gov/npsurcharge for the specific apartment before assuming a pied-à-terre qualifies. And the surcharge runs through June 2031 unless the legislature extends it. Corcoran notes that activity above $5 million softened after the tax was announced, and agents are already seeing second-home buyers hesitate.
What it means if you are buying
The under-$2 million market thinned out and the co-op market firmed up, so a well-prepared buyer, with financing lined up and, for a co-op, a board package ready, still has the edge on the best apartments. If you are buying a second home, price the surcharge into the decision from day one and check the city's valuation of the specific apartment, not the asking price.
For a primary residence nothing changed on the tax side, and the record median is a reminder that waiting for a dip has not paid in Manhattan for six quarters running.
What it means if you are selling
A record median and a five-year high in contracts favor sellers who price to the current market from the first day. Apartments above $2 million found more buyers this quarter than a year ago; below $2 million, fewer, so pricing discipline matters most in the middle of the market.
If your likely buyer wants a second home, expect the surcharge to come up in negotiation. If your buyer will live there, it does not apply.
The Upper West Side and co-ops
Co-ops, roughly three quarters of Manhattan apartments and most of the Upper West Side, were the quarter's price leader for once, with the median up 8.5 percent while condos rose about 3 percent. Buyers who had drifted toward condos are looking at co-ops again for space and location, and because a co-op is almost always a primary residence, the surcharge rarely touches a co-op sale.
None of that changes how a co-op purchase works. Board strength, financials, and fit still decide who gets approved, which is where building-level knowledge matters most.
Michael's take
A record quarter and a new tax in the same three months is a good reminder that the headline market and your apartment are different things. If you are buying a home to live in, the second quarter said what the last five did: prepare well and move when the right apartment appears. If you are buying a second home, get the city's valuation before you fall in love. If you are selling, price it right the first time. Those are the conversations I am always glad to have.
Sources
- Douglas Elliman and Miller Samuel, Manhattan Q2 2026 market report
- Corcoran, Manhattan 2Q 2026 market report
- The Real Deal, TRD Data analysis of Manhattan recorded sales, Q2 2026 (July 15, 2026)
- Brown Harris Stevens, Manhattan Q2 2026 market report
- New York State Tax Law Article 30-C, sections 1350–1356 (enacted May 26, 2026); NYC Department of Finance final rules, July 14, 2026
Figures are drawn from the cited quarterly reports and are approximate. The market changes continually. For current numbers on a specific building or apartment, speak with Michael.
