The Market Report: August 2026

The Pucker | Heinlein Team
August 3, 2026

The Second Half

Despite the city stewing in July heat this past month, our New York City real estate market was expectedly not as hot. We are in an historically slower two months of the year. As we entered Q3, we were able to assess the full market results of Q2. In contrast to our slower summer activity, Q2 showed a lot of market resilience despite shifts in the economy, elevated mortgage rates and international upheaval.

In Manhattan, the market saw a significant surge in high-end activity. While total sales finished nearly 4% below last year, contract activity rose 3%. The luxury market was the primary driver – signed contracts for properties over $20M jumped 25%, while the $10-20M sector saw a 39% increase. This spanned the borough, with contract activity in both Upper and Lower Manhattan rising roughly 16% and 25%, respectively. But inventory remains tight. Active listings dropped over 8%, and new listings fell 13% overall. Even with a 39% influx in new inventory for the ultra-luxury $20M+ sector, buyers in the $1-3M range continue to face strong competition.

Brooklyn also showed its strength in Q2. Condos were the borough’s market fuel, with sales rising over 7% year-over-year and representing over 35% of all transactions. As with Manhattan, Brooklyn’s luxury market spiked with property sales above $3M increasing over 32%, and the $2-3M bracket expanded nearly 9%. This high-end activity pushed the average condo sale price up roughly 9% to nearly $1.5M.

While Brooklyn coop and house sales saw a dip, offer and contract activity point to an increase. Signed contracts on houses rose nearly 3% year-over-year, but the borough’s house market showed a distinct split – activity below $2M softened, while transactions above grew notably. Condo contracts were also strong with an 11% year-over-year increase. The weakest Brooklyn market segment was the $500k-1M range, which represented 34% of all sales and fell over 12%.

Low inventory remains a persistent issue that continues to affect sales in both boroughs. Manhattan’s three-year trend of tightening supply continued in Q2, and Brooklyn also continued to see a decline in new coop and house inventory. But buyers remain committed, as evidenced by Brooklyn’s median time on market of fewer than 60 days.

As we head into Q3, the market is well-positioned for growth. Inventory historically increases in the upcoming months prior to a taper at the year end holidays. If patterns play out and buyer activity remains persistent, transaction volume is poised to outpace 2025 levels. If you are looking to take advantage of this quarter’s upcoming market opportunities, speak with your real estate advisor and devise a plan before everyone else has the same idea.

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