Manhattan Condo Sales Face Losses
A recent report reveals that a third of condominiums sold in Manhattan last year were sold at a loss. Brown Harris Stevens, a brokerage, examined over 2,500 condominium transactions, uncovering significant financial losses for certain buyers.
The analysis covered condo resales from July 2024 to July 2025, showing that properties bought in the last decade experienced particularly poor resale values.
Interestingly, more than half of the condos purchased between 2016 and 2020 ended up losing value, which paints a grim picture for those buyers. In contrast, most sellers who acquired their condos before 2010 believed their properties had increased in value.
For recent condo sellers struggling to make a profit, there are several factors to consider. The years from 2015 to 2024 were quite dismal for Manhattan real estate, with apartment prices rising by less than 10% during that entire period, according to the Douglas Elliman’s Miller-Samuel Report.
Experts attribute part of the current issues to the 2016 condo boom. Buyers rushed in during that time, hoping to purchase before prices soared. This peak, especially notable in the luxury sector, led to buyers making significant financial commitments, arguably at the peak of the market.
From 2015 to 2024, the average price per square foot saw a decline of 3.8%. However, those in the luxury market seemed less affected, with just 20% of sales over $10 million resulting in a loss.
Even the wealthiest Manhattanites have felt the pinch over the past decade. Changes to the city’s incentives for luxury buyers, such as the 2017 limits on state and local tax deductions and the mansion tax introduced in 2019, have dampened enthusiasm.
According to reports, New York City has seen a decline in billionaires since 2010 and a drop in millionaires from 12.7% to 8.7%, partly due to migration to lower-tax states like Florida, especially during the pandemic.
Generous mortgage rates, which were common earlier, have also disappeared. For example, the average 30-year mortgage rate was around 3.6% in 2016 but reached historic lows in 2020 and 2021. Since then, the market has slowed, especially after the rally that began in 2022, impacting many potential condo buyers.
Despite these challenges, there are signs that the Manhattan condo market may be shifting. Last year saw an increase in sales, even with higher mortgage rates and limited inventory. There’s some optimism about potential price relief and lower mortgage rates, which could boost confidence among local homeowners looking to sell.
