NYC Presents Perfect Opportunity For Savvy Buyers
As the New York City real estate market reemerges there are indications that this is one of the best opportunities one will see to buy a home.
From first time buyers to those savvy and sophisticated enough to recognize the opportunity the market presents, these trailblazers are the ones that will drive recovery, taking advantage of the moving parts aligned in their favor.
The following are clear indicators why the perfect time to buy is now.
Long-term vision
First, anyone will need to think about their long-term goals. The city always comes back and this will be the time that everyone is going to look back at and say “I should have bought then.” If you are planning to stay in New York long-term, then it’s certainly the right time to purchase. For those in suburban markets hoping to come to the city, they are able to capitalize on a strong selling market to get a premium on their homes while simultaneously taking advantage of the buyer’s market within the city.
Minimized competition
Many foreign and out of town buyers who would be interested in taking advantage of the market cannot be in New York because of travel restrictions and safety issues. Even within the city, people are sitting in a holding pattern until they have more certainty, leading them to wait until the market is going up. This leaves a clear field for smart buyers. It's a very civilized environment for a buyer with less competition and ample supply to pick and choose from at their own pace.
Maximized inventory
Looking for a home can be discouraging but the current market is ripe with options. For seasoned buyers and first-time buyers alike, this is an opportunity to buy something that you never thought accessible from location to size and views. It’s a dream market for taking a step towards purchasing a home you only thought as aspirational previously. In addition to the surplus of inventory available, there is more negotiability and flexible terms for purchasing.
The stock market
Despite recent events, we are still seeing a high stock market as it continues to rally. This runs in contrast to a downturn in the NYC real estate market as the two are usually in sync. So while your money is becoming more valuable in the stock market, we are seeing more deals being negotiated within the real estate market. Further, you can borrow money for as low as 2%. The strong stock market, dip in the real estate market, and low interest and mortgage rates create the ideal combination to seize the opportunity in the buyer’s favor.
Post-COVID due diligence
COVID has offered a new perspective on due diligence. Across the board, buyers should ask questions about the financial health of a building they are interested in to have a clear understanding of if and how a shortfall could be passed on to the shareholders. Instead of being content with the past couple of years, look at closer to a decade of history on any capital assessment. This also includes examining the building’s retail client. You can work with your agent and attorney on due diligence and history of the property.
It's also worth noting that boards are being more flexible with regulations such as sublet policies to make purchasing more appealing.
Brown Harris Stevens’ top producing team of Nada Rizk and Joanne Greene have navigated the Manhattan real estate market for more than 20 years.
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