Happy New Year to All of Us!
We don’t know what 2021 has in store yet but based on the responsiveness of the last quarter in 2020, things seem to be on the up and up!
The real estate market finished with 32 percent more signed contracts year-over-year*. It's both startling and welcome news! Just when things were supposed to be winding down at the end of the year, the market was actually heating up. It's been extremely busy and buyers have been incredibly active. We're looking forward to carrying that momentum right through Q1 2021.
So, what's pushing buyers into the market? Softer prices, low interest rates and increased inventory. Prices are still anywhere from 5 to 15 percent under pre-COVID levels, and there's usually some room for negotiation under that (Unless they are priced competitively to begin with…then we are actually still seeing bidding wars...I’ve been involved in two this week alone!).
For the last five years or so, we've been seeing a declining market and lower property values. The oversupply of luxury condos that filled the headlines years ago caused a trickle-down effect for the rest of the market. Interest rates in some cases are even lower than they were before COVID. And they were already extremely low then! Add in a bountiful supply of listings, and buyers are acting like kids in a candy store — picking and choosing what they want and buying at prices that they dictate (in most cases). And we haven't even hit the spring market yet! That's when we typically see the biggest increase in inventory.
The stock market is hovering over 30,000 and breaking records every other day. Interest rates are likely to remain low for the rest of 2021, and the rest of the nation is seeing a windfall in their respective real estate markets. That means Manhattan and Brooklyn should see the same record pace in transactions and properties sold well into 2021.
And who is leading the charge? The luxury sector, if you can believe it! After five years of a down market, buyers are purchasing luxury property (units priced at $4 million and above) and transacting in record numbers. The luxury market segment broke weekly records for contract signs several times over the past four months. While developers may have over-built the luxury sector between 2015 and 2019, buyers are snatching up those properties, sometimes at a discount as high as 25 percent. But as these buyers continue to push that market forward, developers and sellers are starting to pull back and be less negotiable.
*as per urbandig.com
Local Events
'To Go' Restaurant Week 2021
Through Feb. 7
NYC Restaurant Week is back, with a focus on takeout and delivery options across all 5 boroughs. Each participating eatery will offer an entrée with at least one side dish for lunch or dinner at $20.21 a meal to commemorate the new year.
Get the full list of participating restaurants and more information here!
Children's Open Book Discussion [Zoom]
Thurs. Feb. 25, 4PM
Join the librarians at the Columbus library for our kids book discussion. Kids ages 3-12 (accompanied by a caregiver) will be able to share their thoughts about the characters they meet and exciting plots they've explored.
Click here for more information!
News & Lifestyle Tips
Your Q4 2020 Manhattan & Brooklyn Market Reports are here!
As we continue to experience these unprecedented times, we are here to provide valuable insights into the real estate market so you can stay educated and informed.
We are pleased to share Compass' Q4 2020 Manhattan & Brooklyn Market Reports, highlighting the prevailing trends shaping these markets.
Have questions about how Q4 2020 wrapped up, market forecasts, or anything else real estate? We’d love to connect! Don't hesitate to reach out.
HoffmanTeam@compass.com
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