Although New York City is facing the harmful effects of a higher tax regime, it is clear that those who wrote obituaries for the City did so prematurely. The pendulum, it is easy to forget in the thick of it, swings both ways.
But, you don’t have to just take our word for it!
Whether you’re buying or selling, there is a ton of information out there for you to consume. The real truth is, unless you are on the ground and negotiating in real time – it’s really hard for buyers and sellers to get a true snap shot of what’s really going on.
Can you still get a steep discount as a buyer? Not any more. Are there some discounts happening? Maybe and we mean just maybe. Is it true there are bidding wars brewing? Let’s just say, bidding wars are the new black.
We always aim to give you all the data and let you see for yourself what’s happening. That’s why we decided to do a round-up of articles in the NY Times, NY Post, and Wall Street Journal recently that brings these points home rather well.
Take a look at these real estate headlines
The headline tells it all.
This article is about new development inventory and how developers have handled the slow-down, with those willing to give significant price cuts or other incentives garnering sales.
Wrapping up the New York Times Coverage:
This is a great article and a must-read for those following NYC real estate. The basic thrust is prices are down (most in the smallest and largest apartments), but volume is up and optimism about the vaccine is driving demand. First time home buyers are very active, as are out-of-state purchasers.
Now for the Wall Street Journal:
This article is about people who got caught up in the “must buy a house” frenzy driven by COVID-19 and how it didn’t always work out so well. Seems obvious in hindsight…
This is a fascinating story about the well-publicized boom in pandemic buying in Florida, but also the flip side of the coin: just as many people are leaving the state. It turns out that people don’t like hurricanes (shocker) and it is apparently a surprise to some that it gets stiflingly hot and muggy in the summer there. Demographers are finding a trend of people leaving the state after moving there within a few years, either to return home or to move to places like the Carolinas which benefit from better weather and cheaper housing.
And finally, the New York Post roundup:
This is another must-read article. Here is the punchline chart:
As you can see, (and this data comes from Nancy Packes and Eastdil Secured), the net outflow of people from the City is expected to reverse *this month*. This is being driven by a robust recovery in employment and surprisingly fast progress on the vaccine front.
Boom.
What does this all mean?
Data is putting the lie to the concept that “everyone is leaving the City”. Many of those who moved out are now regretting it. Employment is experiencing a surprisingly strong rebound. The net exodus of people from the city is officially over. And the vaccine rollout is coming on strong.
Yes, prices are lower, but expect very strong demand going into the spring and summer markets. If you are buying, make sure you are prepared with pre-approvals and and supporting documentation. If you are selling, it might be a good time to sell with a swell of demand on the horizon.
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