It’s time for buyers to get out there!
Our last few blogs have concentrated on the effect of COVID-19 on the New York City real estate market and providing a view of the outlook ahead. As we approach the official start of Spring on March 20th, the traditional New York City spring real estate market is percolating. Buyers are out and about notwithstanding the weather and the snow drifts. Deals are getting done.
New York City has always been a story of niche markets.
Not only do we have 5 boroughs but Manhattan itself is divided up into sub-markets. These sub-markets always have their own characteristics and operate differently. We have been advising that the buyer’s market will not last forever. We are seeing markets shift already. The markets below 23rd Street and above the financial district are showing definite signs of strength. Inventory is low. Properties priced well are moving fast and we are starting to see multiple offers.
When we start to see niche markets strengthen, it is a sign that the Manhattan real estate market is coming alive!
COVID-19 vaccines are having a positive affect on the market
The property market is, like all markets, affected by sentiment. And the sentiment pendulum is swinging back towards the positive. The data recently released on the effectiveness of the Covid-19 vaccines is overwhelmingly positive (thank goodness). Consider, for example, these two headlines from the New York Times and Business Insider:
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The real-world effectiveness of the vaccine is prompting a surge of activity on the ground in the real estate market.
Listing brokers are reporting a significant uptick of showing requests, and there are starting to be competitive bidding situations for the first time in over a year in Manhattan (Brooklyn was a very competitive market during most of 2020 and continues to be hot in 2021).
What should you expect as a buyer in this market?
As of yet the bidding wars have not typically resulted in above-ask prices. But it is only a matter of time before we will be seeing that happening once again. Expect it to start in the sub-$1.5MM price range first, then extending into the pricier categories.
Furthermore, a lot of inventory has sold in the last 45 days, but expect a lot more to come on (and be sold) in the Spring selling season. We anticipate a very brisk market from here to Memorial day with prices firming up and a lot of inventory coming onto the market.
The bottom line is, if you’re a buyer, now is the time to get there! Mortgage rates continue to be at historic lows and the more activity the market sees the less power the buyer will have. Trying to time the market is never a good idea!
As always, if you have any questions feel free to reach out to us any time!
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