When it comes to Manhattan, certain real estate trends are more prevalent than others in 2020. These trends are shaping how and when people choose to sell, rent, or purchase a residence in the area, and they will likely continue to make an impact on the industry.

The median price of homes in Manhattan is currently at slightly below one million dollars. However, per square foot, housing prices have actually decreased. With per square foot prices 6% less then they previously were, the overall market value of houses has decreased by more than 7%.

Median prices in certain parts of Manhattan have decreased more than others. For example, in the Financial District, the average price of a home in 2020 is approximately 10% less than previously. Homes in the Upper West Side are selling for approximately 6% less than in previous years. But the drop in prices isn’t lower anywhere than in approximately 14%.

2020 has not seen as many sales of homes as expected. This is partly attributed to the fact that more vacant houses are available than ever before. Between 2013 and 2020, over 16,000 homes became available for sale in Manhattan. As of now, roughly 800 of them are still on the market.

Manhattan is known for its luxury homes. This means that the lower end housing currently on the market is selling at lower prices in comparison. However, this hasn’t stopped people from choosing to purchase homes in other boroughs where they can get more value for their money.

There is always a demand for housing in New York City. As a result, no other city in the world has as valuable of a real estate market. Over the course of five years, from 2015 to 2020 the appreciation rate for real estate prices saw a 28% increase. For 2020, the appreciation rate has been a steady 0.5%. It remains to be seen whether or not this rate will stay the same or fluctuate. Industry experts have predicted that the rate will increase, but by no more than 2%.

Those looking to purchase a Manhattan home must consider the city’s tipping point. It is longer in NYC than it is in other locations, with an average of over five and a half years. Higher priced homes require those buying them to live in them longer in order to gain the full value.