Well, the number of Manhattan residents is on the increase, selling their homes for less than what they paid for them. The number is expected to increase since the Coronavirus shut the city down.
Back in January and February, 19% of resellers traded their properties at a great loss which is now up 13% from this time last year. These findings have come from listings on the website StreetEasy.
Manhattan was the only borough calculated by the firm and has shown the decline in values on the rise.
Re-thinking City Life Value Due to COVID-19
Since years of unbelievable price increases, buyers are now in the best position. They have demanded discounts and played around with deals as inventory has been piling up.
Now, many residents in Manhattan are self-quarantined in their homes and some are fleeing the city for better places to live and demand has come to a screeching halt.
Due to the Covid-19 pandemic, things are still unfolding and we cannot see the full impact on the real estate market. Unfortunately, sellers have not been able to adjust to the latest developments with even more price cuts. In 2018, only 8% of Manhattan homes sold at a loss.
That number doubled in 2019 at 15%.
Over January and February of this year, Brooklyn and Queens homeowners sold for less than what they initially paid at 6.4% and 7.5% of deals. This amount is about the same as a year earlier.