The New York City COVID Market and Subsequent Rebound Shatters Records — Oh, how far we’ve come!

After COVID ravaged New York last spring, the city entered Phase 2 of the reopening plan on June 26, 2020, which meant brokers could start limited showings again. But by that point, it seemed like no one was left in the city! Listings slowly started to come on to the market and then started growing and adding up (in a big way)! The first record COVID broke was the inventory record — total listings rose to 9,600 properties on-market, tying the last record-setting period in 2008, during the financial crisis. This time around, we were adding listings to the market at a breakneck pace from June 2020 to about October 2020 — but no one was buying!

Until they were.

Now, one year later, the tables have turned! Demand outweighs supply. We’re now in a market starved for listings (or at least malnourished). As of May 31, we currently have 7,230 listings on the market, which is on the lower side of historical averages for this time of year. To the U.S. real estate industry as a whole, inventory shortages are nothing new. Nationwide, there was almost no hiccup for demand in the housing market during the height of the pandemic. In New York City, however, it was a different story, and industry pundits thought that COVID was the Armageddon Manhattan was “due.”

Just before COVID, NYC was coming off an almost four-year buyer market with prices descending about 10 percent from 2015 to the end of 2019. When the pandemic hit, the overall market was finally seeing a stronger buyer demand. Then COVID hit with thud and we saw prices descend even further.

Or did it?

After nothing was selling in the “COVID market”, today’s market has seemed to compound buyer demand into one single selling season. Pent-up demand from 2020 and renewed buyer interest in 2021 has created a frenzy I’ve never witnessed in my almost 20-year career. I started seeing buyer demand pick up in October 2020, and it just snowballed from there!

COVID record-breaker No. 2 — We have over 5,200 listings in contract as of May 30, 2021. A number never recorded before. Other impressive stats include a luxury market with over 30 contracts signed every week for almost five-and-a-half months now! Yet another COVID record-breaker is the rental market. During the pandemic, there was a roughly 30 percent vacancy rate in Manhattan — a market that generally hovers around a 1 percent vacancy rate. And now, the rental industry is signing over 1,000 leases signed per week, which is on par with any robust summer season.

So, what's to come?

We all think we know the answer, but we’re all just guessing. I think activity will stay robust and remain in this snapback mode until Spring 2022. There could be a small lull this summer as vaccinated New Yorkers are turned loose and can finally travel! But then things should pick right back up again in the fall. If it continues at this pace, maybe, just maybe, the market will start to see prices begin to rise!

But for now, we’re happy to see the high transaction rate of buyers purchasing new homes. The Hoffman Team has also set its own record this selling season with over $120 million in pending sales and closed contracts year to date. It’s an incredible, truly remarkable, head-spinning turnaround!

Local Events

“Futures Ever Arriving”

Head to Chelsea Market for an exhibit featuring works from five emerging Asian American artists in honor of Asian American and Pacific Islander Heritage Month. Visitors can see the entire exhibit through a self-guided tour map with the locations of each piece marked throughout the main concourse. Read more HERE.

Sunset Jazz Cruise

All aboard for a cruise at sunset set to live jazz, passing beautiful views of the city and the Statue of Liberty. As you sip your drinks, the Boat Band plays jazz standards live. Classic Harbor Line’s Live Jazz City Lights or Sunset Sail in NY Harbor starts Saturday, June 5th.

See HERE for details and tickets.

Lifestyle Tips & Tricks

Gardening for a Great Cause

Many people are facing food insecurity due to the economic impacts of the global pandemic. Did you know that many local food banks will take fresh produce donations? If you’re a gardener, consider growing a few extra plants and donating the surplus food - small, pandemic victory gardens can help fight a big problem.

Use the hashtags #CreateFoodSecurity, #TheFoodSecurityProject as you share your growing gardens on social media! If you don’t have a green thumb, support The Food Security Project started by Compass Boulder Agents, Catherine & Andy Burgess.

30 Outdoor Bars That Will Tempt You to Sit and Sip

From pergola-covered and perched on a hill to open-air and oceanside, these outdoor bars are the ultimate destinations for at-home relaxation.

Courtesy of HGTV

50 Unique Father's Day Gifts for Every Type of Dad

Although your dad may say he doesn't want anything for Father's Day this year, you know that showing up without a present isn't really a possibility. After all, he's the guy you looked up to (quite literally) all these years, and it's only fitting to get him a Father's Day gift that shows just how much you appreciate him and all that he does for your whole family. Courtesy of Good House Keeping