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New York City home sellers take higher losses, Manhattan real estate especially costly

Photo via Getty Images

BY GRANT LANCASTER

The rate of homes sold at a loss in New York City rose to nearly 10% last year, according to a report by StreetEasy.

Selling real estate in the city continues to become more of a risk, with prices declining for the third consecutive year, according to the report.

In Manhattan, the ratio was even worse, with 15% of homes selling at a loss in 2019, nearly doubling from 8% the year before. The same year, prices fell at the fastest year-over-year rate on record, contributing to the slump. More than 30% of homes in Midtown and the Financial District sold at a loss last year.

The median amount of money lost is also on the rise, up to $76,078 in 2019 from $72,426 the year before.

StreetEasy reports that condominiums are more likely to sell at a loss than co-ops, with the 14% rate of condos sold at a loss about double that of co-ops.

Brooklyn listed the best rate of the five boroughs, but the rate of homes sold at a loss still crept up from 5.6%  to 6.2%.

The study was conducted before the emergence of COVID-19, but StreetEasy officials expect the trend to continue going forward, with January and February of 2020 showing just over 19% of homes sold at a loss.

Read the full report at streeteasy.com.

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