| Has the pandemic sunk the city and the Real Estate Market? |
| If you have been listening to the news, you may have heard (from James Altucher and the like) that NYC is dead… FOREVER! Some, especially those who don’t live here, have started to buy into the hype. In the last few weeks, I have been receiving calls from eager out of state buyers wanting to buy NYC properties at prices that are… well, just ridiculous. [Spoiler alert, 1BR condos for $300K in Midtown don’t exist…] No surprise, I happen to fall very much into the Jerry Seinfeld camp when it comes to this debate. Perhaps I am biased, but I have good reason to be. I have had a love affair with this city ever since I saw my first Broadway show at the young age of 16! Having now lived and worked here for over a decade, I have seen my resilient city survive the fallout of the financial crisis, stand strong in the face of Hurricane Sandy, and now bravely forge ahead in spite of the pandemic. NYC is STILL the the top city for finance, tech, arts, culture, and cuisine, and while she may be down, she is not out! We are NY Tough! This is not to say that the pandemic hasn’t had an effect on life here or the real estate market in the city, it has. Overall, the market has been slower and deal volume is down. This is a result of the pandemic and pre-election uncertainty. In the sales market, the range of negotiability varies widely based on the price points. The sub-$2M market is moving the most, and the biggest discounts are happening in luxury and new development. The rental market is experiencing record level vacancies, around 7% and climbing, leading to sharp price cuts and more landlord concessions than ever before. One thing I know for sure, this is a specific moment in time. New York will come back. To those willing to jump into the market now: the water is warm! Inventory is at record high levels, there is more negotiability, and your interest rates literally could NOT be lower. For more on the market, check out my newsletter here! |
