The New York real estate market has not gone anywhere
Nada Rizk
New Yorkers are known to be forward thinking and resilient –– and this applies to the city's real estate. While we are definitely in a current market pause, and will probably continue to be in one until the situation calms, the Covid-19 outbreak hasn't fully stopped purchases that were already underway from being completed and we continue to market some available properties. As everyone adjusts to this global pandemic, we do not know what the new norm will be once the Coronavirus settles, however, there is a strong indication for market activity. We have been communicating with clients––from investors, to local residents––and it seems that so far, people remain committed to buying properties in New York. None of our buyers and sellers have expressed an interest in changing their plans.
There is a strong foundation for a market recovery
We expect to see a delay in our usual real estate Spring peak seasons due to the city's lockdown and global restriction of travel, but there is every indication that the city will still have an active real estate season. Transactions that were in progress have remained on track and the market report (for the months of Jan-March) which came out in the midst of New York's quarantine, pointed to many more deals being made, with sellers willing to adjust their prices and buyers interested in seizing these opportunities. Interest rates will remain historically low. Traditionally, the success of the stock market and low unemployment rates tend to favor sellers. This past year, these were at opposing ends prompting some buyers to seize this unusual occurrence of a robust stock market coexisting with a strong buyer's real estate market.
It will remain a buyer’s market
We feel that when we return to business it will remain a buyer’s market. Buyers who have been on pause with their search will be eager to move forward and sellers who have had a property sitting on the market will be just as eager to sell. Everyone will be anxious to move forward. Buyers will be motivated and looking to take advantage of opportunities in a market that continues to offer low interest rates, high inventory and realistic pricing.
Joanne Green
We anticipate a lot of activity due to pent-up demand, but we don’t think that will translate to higher prices, just more accurate pricing and deals being consummated. There may be opportunities in new development as developers continue to offer incentives.
What the market will look like
While buyers looking for a primary residence are unlikely to buy their new home sight unseen, they are reevaluating their new home needs given the current situation and preparing a list of properties to view as soon as possible. There will always be real estate needs – relocation, expansion, downsizing, etc. We expect there to be a lot of activity and deals being made.
New Yorkers are resilient - they like to move forward as we’ve seen after other setbacks we’ve experienced. We have adapted quickly to a new way of working despite everything changing. We have managed to continue our lives, work, school in a different way but know everyone misses their old lives and are eager to regain a sense of normalcy and move forward.
Nada Rizk and Joanne Greene are a top producing team at Brown Harris Stevens.
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