Manhattan’s luxury real estate market ground to a halt last week, with just one trophy home asking more than $10 million entering contract between July 6 and July 12, according to Olshan Realty’s weekly luxury market report. The figure marks the weakest week for Manhattan’s $10 million-plus market since late December, even as 29 homes priced at $4 million or more went into contract during the same period.
Normally, between three and five properties priced at $10 million and above enter contract per week, realtors told the New York Post. The lone trophy-home deal was for a condominium at 1122 Madison Ave. with an asking price of $21.8 million. The next-priciest signed deal was a Chelsea condo asking just under $10 million.
Brokers say the slowdown reflects growing unease among wealthy buyers over New York’s political climate and tax burden under Mayor Zohran Mamdani. Compass broker Victoria Shtainer, who works with international buyers and luxury condominium developments, said affluent purchasers are increasingly scrutinizing whether New York remains an attractive place to own a second home.
“It was shocking in a really bad way,” Shtainer told the Post. “The luxury buyer is backing off and thinking twice.” She noted that while summers are typically slower for Manhattan real estate, the latest numbers were well below normal. “Summers are slower. But not this slow,” she said.
The broader luxury market showed more resilience. Nineteen condos, six co-ops, and four townhouses priced at $4 million or more entered contract, with 20 of the 29 deals involving homes asking less than $6 million. This suggests the market below $10 million remains active, even as the top end pulls back.
Jonathan Miller, founder of appraisal firm Miller Samuel, cautioned against reading too much into one week’s data. “It’s consistent with what we saw in the second quarter where the market above $10 million is down, but the market just below that is up,” Miller said. “It’s almost a shift in the mix.” Miller noted that Wall Street compensation and tech-sector wealth remain strong, and said it is hard to determine whether this represents a trend or simply a seasonal pattern.
While some brokers have blamed Mayor Mamdani’s anti-wealth rhetoric for cooling demand, Miller said there is “no specific evidence” that wealthy buyers are leaving New York faster because of the new administration. However, he acknowledged that uncertainty surrounding implementation of the city’s pied-à-terre tax may be contributing to the pause. “The pied-à-terre tax may be a driver of this pause,” Miller said, adding that similar behavior is being observed in the Hamptons market, which is “joined at the hip with Manhattan.”
The cooling luxury market comes amid broader shifts in New York’s commercial and residential real estate landscape. While the high-end residential market pauses, the commercial sector has shown signs of life, with American Express breaking ground on its new headquarters at Two World Trade Center and event space Glasshouse signing a major lease at Three World Trade Center’s podium level.
Sources: New York Post, Olshan Realty
