Manhattan enters the final stretch of August with just 4,674 active listings, down 21% from the same time last year and one of the leanest supply environments we have seen in years.
That matters. But this month, understanding the inventory number requires looking beyond the headline. Manhattan has been operating with constrained housing supply for much of this year, as fewer owners have chosen to sell and buyers have continued to absorb available inventory. That underlying trend remains very real.
But in August, it has temporarily intensified as hundreds of Manhattan properties that were previously publicly marketed have recently been removed from public listing websites, with many continuing to be offered to the brokerage community through the ‘Participant Only’ status within the REBNY Residential Listing Service (RLS).
As a result, today’s reported active inventory makes Manhattan’s supply shortage appear even more pronounced than the underlying market conditions alone would suggest.
Manhattan Has Less Supply, But More Homes Are Available Than the Headline Suggests
Only 104 new listings came to market this week, down 18% from last week and 19% year over year. Some of that is completely normal. Late August is traditionally one of the quietest periods of the year for new listings, as many sellers wait until after Labor Day to enter the market.
But this year, another important factor is affecting the numbers. A recent analysis by Kael Goodman, CEO of Marketproof found that, as of August 12, 440 Manhattan properties were being offered as Participant Only listings, representing approximately $1.94 billion in asking value, and that 78% of the Participant Only listings analyzed had previously been publicly marketed.
Participant Only properties remain available for sale through the REBNY RLS and can be seen by REBNY-member brokers, but they are not distributed to public-facing real estate websites. Marketproof also notes that days on market do not accrue while a property is in Participant Only status.
Importantly, this is not a market-wide shift in how listings are being marketed. According to data from RealPlus, Compass accounted for 65% of all new Participant Only listings added in August, indicating that one firm disproportionately drove growth in this segment. When Corcoran, which is also owned by Compass, is included, the two brands accounted for 87% of new Participant Only listings. In other words, the recent surge in Participant Only listings and its impact on publicly reported inventory have been overwhelmingly concentrated within one ownership group.
The Participant Only Surge Is Slowing, Setting Up an Interesting September
The movement into Participant Only status was particularly pronounced during the first two weeks of August. Marketproof found that new Participant Only listings nearly tripled from 47 in June to 144 in July, with another 153 added during the first 12 days of August.
That pace now appears to have slowed considerably. Fewer than 40 listings moved into Participant Only status this past week, compared with more than 100 during the first week of August and nearly 90 during the second.
What happens next could have a significant effect on September’s numbers. Manhattan typically experiences a meaningful increase in new listings after Labor Day. This year, that normal seasonal influx will likely be supplemented by properties returning to public marketing after spending part of August off-market or in Participant Only status.
If that happens, we could see an unusually large increase in new listings in September. That should not automatically be interpreted as a sudden change in market fundamentals. Rather, a portion of that increase may simply represent previously available properties becoming publicly visible again.
The more important measure will be where total active inventory ultimately settles once the fall market is fully underway.
Even after accounting for the recent changes in listing status, Manhattan continues to have a relatively limited supply. That has been one of the defining themes of the market for much of this year. But the magnitude of today’s reported 21% year-over-year inventory decline should be viewed with the appropriate context.
Resetting a Counter Does Not Reset a Property’s History
There is another important consideration for sellers. Days on market can influence how buyers initially perceive a listing. But today’s consumers and real estate professionals have access to considerably more information than a single number.
Listing histories, prior asking prices, and previous periods on the market are readily available. Marketproof found that among those added in August, 88% had previously been public.
Changing how a property is currently marketed may change the number displayed next to “days on market.” It does not erase the property’s history.
For sellers, the more durable strategy remains the same: price correctly, present the property well, and maximize market exposure.
Buyer Demand Continues to Absorb Available Inventory
Against this unusual supply backdrop, demand remains healthy. Manhattan recorded 174 signed contracts this week, up 5% from last week. Pending sales stand at 3,999, approximately 25% higher than the same period last year.
The year-to-date comparison provides even more perspective. Manhattan has recorded 7,393 signed contracts so far in 2026, slightly ahead of the 7,338 contracts signed during the same period last year.
Buyers have essentially matched last year’s pace while only 10,304 new listings have entered the market, 9% fewer than the 11,348 that came to market during the comparable period in 2025.
That relationship between supply and demand remains one of the most important dynamics shaping Manhattan real estate.
Brooklyn Remains More Balanced
Brooklyn presents a somewhat different supply picture. Active inventory declined 1.5% this week to 3,270 listings, roughly in line with last year. New supply increased, with 141 properties coming to market, up 26% from last week and 9% year over year.
Brooklyn recorded 109 signed contracts, down 2% for the week, while pending sales stand at 2,434.
Year to date, Brooklyn has recorded 4,387 contracts compared with 4,368 during the same period last year, while new inventory has remained essentially unchanged.
The borough therefore enters the fall market with a relatively balanced relationship between new supply and buyer demand.
The Bottom Line
Manhattan remains a supply-constrained market, but today’s 4,674 active listings understate the number of homes actually available to buyers because hundreds of properties have shifted away from public marketing, with some remaining available through the brokerage community.
For buyers, supply remains limited, particularly for well-priced and well-presented properties. Working with an agent who can see the full marketplace, including properties that may not appear on consumer websites, is especially important in the current environment.
For sellers, limited overall inventory continues to create opportunities, but changing a listing’s status or resetting the days-on-market counter does not alter its underlying market history. Buyers still respond to value, condition, presentation, and pricing.
And for anyone watching the market, September will be particularly revealing. The normal post-Labor Day increase in listings will likely be amplified by properties returning to public marketing after being removed in August. The size of that increase will matter less than where total supply ultimately settles once the fall market is fully underway. That will give us a much clearer picture of the true balance between buyers and sellers.
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