As summertime in the Hamptons draws to a close, Behind The Hedges is heading back to Manhattan to check the pulse of New York City real estate. Frances Katzen, an associate broker at Douglas Elliman in the city, is a powerhouse on the real estate scene with a deep understanding of the market.
The founder and leader of The Katzen Team, she has achieved more than $3 billion in total sales and consistently sells in excess of $350 million annually. She hosts a highly respected podcast, The World of Real Estate with Frances Katzen, talking trends and market data, so she was ready for our questions.
BTH: As summer on the East End wraps up, please catch us up on the New York City real estate market. What’s the latest?
FK: New York City’s real estate market is entering the fall season with renewed momentum. Sentiment among buyers and sellers remains cautiously optimistic, despite ongoing political headwinds. In Manhattan, sales activity is on the rise, with new contracts in July climbing more than 20% year-over-year. While inventory levels have increased, demand has kept pace and new signed contracts continue to outstrip the flow of new listings. Activity is especially strong at the top end of the market, with the median price now exceeding $6.5 million, an increase of nearly 18% from last year, while almost 70% of deals closed in cash. Global and domestic demand for ultra-luxury trophy properties remains strong and records are still being broken, highlighted by several significant Downtown transactions, including a record-setting $80 million property that recently went under contract.
BTH: How are buyers and sellers factoring the mayor’s race — and the potential change in leadership — into their decisions about timing in the market?
FK: Election noise creates some hesitation, and I’ve had a number of calls from concerned owners who are closely watching how the mayor’s race unfolds. Some clients are moving forward with selling investment properties, others see this moment as a buying opportunity, while a portion are waiting on the sidelines until the election wraps up. Need-based buyers and sellers are still transacting, because life events don’t wait for politics.
BTH: With the upcoming mayor’s race putting housing and development policy front and center, how much do you think political leadership will actually influence the trajectory of the NYC real estate market over the next few years?
FK: If the city penalizes investment by pushing heavier burdens onto higher-value neighborhoods or by discouraging developers and private landlords, you reduce the incentive to build and maintain housing. Less capital flows in, projects stall, and the supply squeeze intensifies, which ultimately hurts renters and buyers across the board. Regardless of the outcome, New York has a long history of adapting and thriving. The fundamentals — global draw, deep employment base, cultural gravity — remain intact, and that’s why this market endures.
For more on Katzen’s listing at 108 Leonard, click here. This article appeared in the Labor Day weekend issue of Behind The Hedges in Dan’s Papers. Tap this link to read the full digital version. For more on Manhattan real estate, explore behindthehedges.com.
