Investors say “Bye bye Manhattan” and cause an indescribable meltdown. This is what emerged from the latest report on one of the most important real estate markets on the planet: New York. Covid, as noted in our previous guides, has hit the world real estate market hard. With the necessary exceptions. Some countries have managed to recover, while others have not been able to re-emerge from this profound health crisis. But today, we at Realigro have decided to analyze in detail the real estate market in this neighborhood, trying to understand why many have said ”Bye bye Manhattan”. So, if you are ready, we can start!
Let’s start with the restrictions. The coronavirus emergency has stalled any activity, including buying and selling brick. But despite that, everything seemed to be recovering. In fact, in recent times, preferences have shifted to the peripheral areas of the city. This means that the economic recovery has been very slow. This is for a very simple reason. The cost of living and real estate in the suburbs of New York is much lower. Similar to the structure of any metropolis. But everything seemed to return to a faint normality, especially when the State of New York decided to lift the various bans imposed during the lockdown period. Such as visiting a hypothetical house for sale. The problem was unique: the recovery involved all major cities in the state. All except Manhattan, which was quickly supplanted by Brooklyn, becoming the main alternative for many buyers.
We must now analyse the actual numbers of the collapse that led to the ” Bye bye Manhattan ” effect. Compared to sales in the same period in 2019, a 60 % drop was recorded this year. There are also many residents who move around to better cope with the pandemic, with a preference for areas with green spaces and courtyards. The remaining potential buyers are mainly asking for more discounts. They are 20% less than the agreed price. But this has led to a decrease in the number of properties on the market, which obviously do not deserve to be devalued (according to their owners).
But what are the house prices in Manhattan? In a previous guidebook we had already analyzed such a critical phenomenon. But today we’ll go into more detail. The average price for homes in Manhattan is around one million dollars. As we mentioned earlier, sales have fallen mainly for properties in this price range and above. Sales of the cheapest properties have also plummeted, down exactly 47%. As a result, the famous “big business” of over $20 million has disappeared.
How will the situation evolve? While we wait until the Bye Bye Manhattan is final, we hope for a better ending. Stay tuned to our portal!
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