Who Said High Rates Would Slow NYC Down?

Mortgage rates remain elevated and ongoing tariff talks continue to fuel uncertainty—but neither factor appears to be slowing down residential sales in New York City.

According to Jonathan Miller, President and CEO of Miller Samuel Inc., signed contracts in April surged by 36% for condos and 45% for co-ops in Manhattan. Brooklyn saw even more dramatic growth, with a 62% year-over-year increase in co-op contracts and a 20% rise in condo contracts.

Miller attributes the uptick primarily to a “higher share of cash buyers, who are less sensitive to interest rate fluctuations,” particularly in Manhattan. While he notes this trend bucks the national pattern—where high interest rates have generally tempered sales activity—there’s evidence that demand remains strong even among mortgage-dependent buyers.

The Mortgage Bankers Association reports that mortgage applications for home purchases rose 2% week-over-week and were up 18% compared to the same week last year. That follows an 11% spike the previous week, marking a meaningful rebound after a sharp drop in April.

Manhattan’s luxury market saw especially notable gains. Co-op contracts for properties asking between $4–$5 million jumped 200% year-over-year, while those priced between $5–$10 million rose by 233%. High-end condo contracts in the $5–$10 million range also increased by 59% compared to last April.

In Brooklyn, the standout segment was co-ops priced between $1–$2 million, which saw a 140% increase in signed contracts. According to Miller, this surge was supported by a growing inventory—new listings were up 21% for co-ops and 27% for condos in Manhattan, and rose by 21% and 40% respectively in Brooklyn.

As I’ve noted in recent updates, this resilience—paired with continued strength in both Manhattan and Brooklyn—underscores just how robust the city’s residential market remains. With rising median home prices and growing equity across the boroughs, NYC real estate appears to be firmly on an upward trajectory.