Manhattan Condo Owners Lose Money on Sales
Here’s a breakdown of the key takeaways from the article, focusing on the Manhattan condo market:
* Notable losses: over one-third of Manhattan condo apartments sold in the past year sold at a loss. This figure likely increases when factoring in inflation, transaction costs, and renovations.
* Flat Prices Long-Term: The median price per square foot for Manhattan condos is essentially unchanged over the past decade.
* Timing is Crucial: When you bought substantially impacts your returns:
* pre-2010 Buyers: Did the best, with gains of 29-45% over the past year.
* 2011-2015 Buyers: Saw modest gains (around 11%).
* Post-2016 buyers: Experienced losses, with half of those who bought between 2016-2020 selling at a loss. Those who bought during the early COVID downturn (late 2020/early 2021) might fare better.
* Contrast to National Market: This situation is very diffrent from the rest of the US, where home prices have risen substantially as the pandemic.
* High Costs: Manhattan has high transaction costs (6-10%) and ongoing expenses (maintenance, taxes) that further erode returns.
* Inflation Impact: Inflation (36% over the past decade) significantly reduces real returns on Manhattan condo investments.
* co-ops Similar: Co-op prices have generally performed the same or worse than condos.
In essence, the article paints a picture of a Manhattan condo market that has largely stagnated over the past decade, making it a risky investment for those who bought recently. The timing of purchase is far more important than location within manhattan itself.