A New Chapter in Manhattan Real Estate
As the New York City market tries to normalize, buyers and sellers are wondering what real estate will look like in the coming months. There’s no question that buyers will be looking for discounts — steep discounts — and sellers will want to return to pre-COVID pricing. But what lies ahead in the summer months is truly anyone’s guess.
Will sellers bow to buyer demands? Will competition between buyers create a frenzy in the marketplace? Or will nervous energy rule the roost and create a stalemate with no activity whatsoever? If anything is certain right now, it’s the uncertainty.
Yet in uncertainty, lies opportunity.
Fact: Over 2,500 listings came off the market during the New York City PAUSE period. Now, we are in the midst of many of those properties coming back to life.
Fact: We completely missed the spring market, when typically more than 5,000 units come online. Those listings never materialized this spring.
Approximately 600 listings went into contract during the COVID crisis, but at what prices did they go into contrat for? Now that we’re open again and property floods the market, there should be lots of inventory to choose from in the coming months. Supply outweighs demand. If buyers want COVID crisis deals, sellers might hold off until next spring when things cool off and settle down. Then maybe demand would outweigh the supply.
It’s a market of many “ifs” but few certainties.
If buyers move forward aggressively with purchases ...
If sellers adjust pricing to new market realities ...
If mortgage rates hold ...
If COVID returns ...
If office buildings never reopen and working from home becomes the standard ...
Then what?
In many ways, this uncharted territory for the New York City marketplace. Currently, there are strong sellers’ markets surrounding Manhattan, as people reevaluate their shelter-in-place housing needs. The suburbs of New Jersey are seeing bidding wars. In Westchester and even up north into Columbia County, there are strong sellers’ markets. Long Island and the Hamptons — all strong sellers’ markets. Southern Connecticut, Greenwich, Stamford, etc. Sellers’ markets. The Manhattan flight has taken hold and could be with us for a while.
We’ve seen this all before, haven’t we? After 9/11 and the 2008 financial crisis, the markets were weak for six to 12 months following those catastrophes. So why should this be any different?
It is different.
Which direction the market will go is up to the players involved. Sellers will need to adjust. Buyers will need to adjust. Banks will need to loosen up. Brokers will need to work extra-hard.
But it will come back. It’s New York City!
The Hoffman Team put 11 apartments in the contract in June — not bad! But there is an uncertainty in the air, like the market is holding its breath and waiting for the next shoe to drop, But where there is uncertainty lies opportunity.
Happenings & News
Top Ranked Team
Once again The Hoffman Team has been recognized by The Wall Street Journal and Real Trends as not only one of the top teams in New York State but also as one of the top 1,000 teams in the nation by transactions closed and volume sold! This marks our 10th consecutive year making this prestigious list and we are greatly appreciative. We would like to thank COMPASS and most importantly all of our clients and customers who put their trust in us to represent them when selling, buying, or leasing their properties throughout NYC.
15 Ways to Enjoy Summer 2020
Although so many New York City summer staples have been closed and postponed, there are still plenty of ways to take advantage of the warm weather and blue skies in the city. Peruse this list of 15 ways individuals and families can enjoy summer 2020 in New York City.
Summer on the Hudson
Summer on the Hudson is NYC Parks' annual outdoor arts and culture festival, which will take place virtually this year! Take advantage of free classes including yoga, pilates, dance, and more. Explore this entirely virtual initiative and learn more here.
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