September 2026 · Market Pulse
The Fall Market Takes Shape
If you are anything like me, you enjoyed the summer to the fullest—but were also more than a little happy when that first day of school arrived. There is something about September that makes life feel organized again and allows us to feel like grown-ups, not just parents. :)
With everyone settling back into their routines, the fall real estate market is beginning to take shape. There is no shortage of headlines, but as usual, the full story is often a little more nuanced.
In Focus
The Pied-à-Terre Tax Is Here—But Still Widely Misunderstood
A few months ago, in my Q2 Market Watch, I wrote about the proposed pied-à-terre tax. It has since become law, although court challenges remain and there is still a good amount of confusion and misinformation surrounding it—including among some brokers.
The biggest misunderstanding is around value: a $1 million purchase price is not the same as a $1 million Department of Finance valuation. For condos and co-ops, the DOF value is generally only a fraction of what the property actually sells for.
Simply put, if you are looking to spend between $1 million and $4 million on a pied-à-terre in the city, chances are you are in the clear. If you are considering something above $5 million, it is worth checking the property’s Department of Finance value and being prepared for a possible annual surcharge.
Behind the Headline
The Hampshire House Sale: The Discount Is Not the Real Story
The recent Hampshire House penthouse deal will likely generate plenty of headlines. The raw space, once asking $40 million, reportedly found a buyer at $6.765 million—an apparent discount of roughly 83%.
But this is not a finished apartment. It is approximately 7,800 square feet of raw attic and mechanical space that will require an extraordinarily complicated renovation. The buyer will likely spend at least another $10 million on construction, bringing the total investment closer to $20 million once professional fees, closing costs and several years of carrying expenses are included.
That is the more interesting story. Today’s buyers have very little appetite for lengthy renovations, unpredictable costs and years of uncertainty—particularly at the luxury end of the market. Even a truly unique property with Central Park views needed a substantial discount before someone was willing to take on that risk. The buyer may ultimately create something extraordinary, but the price reflects how much the market currently values certainty and move-in-ready condition.
By the Numbers
A Slower Month Does Not Necessarily Mean a Cooling Market
August was a relatively quiet month for Manhattan, with activity slowing toward the end of summer. Available inventory remained limited, however, helping to keep pricing relatively resilient.
The luxury market continued to show strength, with healthy activity at the higher end and relatively little quality inventory available.
Buyers remain selective, with the strongest interest concentrated on well-priced, well-presented homes. Properties that are overpriced or require significant renovation are generally taking longer to sell.
Daniel
