Over a third of condo apartments in Manhattan sold at a loss in the past year, despite headlines of soaring prices. Median price per square foot remains flat from a decade ago. Co-op prices are also stagnant or slightly worse. Long-term stagnation in Manhattan real estate contrasts with national trends of rising home prices.
Manhattan remains one of the most expensive markets, with median sales price at $1.2 million and average just under $2 million. Owners who bought before 2010 fared the best, with gains ranging from 29% to 45%. Those who bought after 2016 were the biggest losers, with half selling at a loss.
Transaction costs in Manhattan range from 6% to 10%, not including renovations, maintenance fees, or taxes. Adjusting for inflation, real returns on Manhattan condo sales are significantly lower. The top end of the market, however, saw double-digit profits for those who bought and sold apartments for $10 million or more.
Reasons for Manhattan’s stagnant condo prices include the cap on state and local tax deductions, 2019 rent laws, and the migration of higher earners during Covid. The luxury market, however, continues to see gains fueled by concentrated wealth, rising stock markets, and demand from buyers less affected by economic cycles.
Brokers and analysts remain bullish on the New York real estate market, with potential for profit for sellers who bought during the market dip in 2020 and early 2021. Median prices are near all-time highs, leading some potential buyers to stay on the sidelines and rent instead. Signed contracts for high-end apartments fell 39% in September. Real estate brokers in New York City attribute the decrease in inventory to a lack of new supply from condo developments, not a decrease in demand or fears of Zohran Mamdani becoming the next mayor.
According to experts like Miller, concerns about policy changes impacting the real estate market are often exaggerated, with past fears proving to be overblown.
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1. Apple reported a record-breaking quarterly revenue of $111.4 billion, surpassing analyst expectations. iPhone sales reached $65.6 billion, iPad sales totaled $8.4 billion, and Mac sales hit $8.7 billion, driven by strong demand during the holiday season.
2. Tesla announced plans to build a new gigafactory in India, its first in the country. The facility will produce electric vehicles and batteries, supporting the company’s expansion in the rapidly growing Indian market. Tesla aims to start operations in India by mid-2021.
3. Google’s parent company Alphabet reported a 23% increase in revenue for the fourth quarter of 2020, reaching $56.9 billion. The tech giant’s advertising business continued to drive growth, with YouTube advertising revenue growing 46% year-over-year. Alphabet’s cloud business also saw a significant revenue increase.
4. Amazon founder Jeff Bezos announced his plans to step down as CEO in the third quarter of 2021, transitioning to the role of Executive Chair. Andy Jassy, currently the CEO of Amazon Web Services, will succeed Bezos as CEO. Bezos will focus on his other ventures, including Blue Origin and the Washington Post.: One in three Manhattan condo owners lost money when they sold in the last year