Did You Miss The Bus?

As New York City nears the 100 percent fully opened mark, the droves of COVID deserters are flooding back to New York City. We’re seeing the rental market rebound in a matter of weeks. The sales market is hitting unprecedented territory with a record-setting number of transactions and signed contracts each week. For example, the luxury market (homes priced at $4 million and above) just posted 21 straight weeks of 30 or more contracts signed. In fact, 80 percent of the listings that the Hoffman team has put into contract since January — that’s 84 closed transactions — have been for New Yorkers moving back into the city!

So, does that mean you missed the bus on COVID deals? Not necessarily.

Despite all the record-breaking transaction volume in the sale market, prices are stubbornly sticking to 2019 levels. And what is the 2019 level? The last high/sellers’ market was in 2015. The market headed into a steady decline from 2015 to the end of 2019, dipping down about 10 percent from the previous highs. So, if you’re buying something at 2019 levels, you’re still buying it at a good price!

What’s different between 2019 and 2021? Competition. We're seeing fierce competition for those listings where the sellers were advised smartly and listened to their agents by pricing their properties accordingly. If the seller’s homes are priced at 2019 levels, they will probably put the property into contract in 3 to 14 days. However, if the seller priced at 2019 levels back in 2019, it could still take 30 to 60 days to put the property contract. The difference being demand — there wasn’t the same demand then that there is today.

The trick for catching the COVID bus, if you didn't purchase over the last eight months, is to look for properties that have been on the market for over 250 days. Those sellers might be anxious about selling, and you might get a better deal than on more recent entries to the market that are priced at a competitive 2019 level. In those new listings that are priced correctly, buyers will most likely see bidding wars. Meanwhile, the property that’s been on the market for over half will see little competition, and buyers might be able to secure a good price. Or, it could be that the seller is crazy and wants a higher price than what buyers are willing to pay, and that’s why it’s been on for 250 days! :-)

Either way, it's a good idea to examine those lingering listings with your agent, as you never know what deal you could uncover. A savvy buyer’s agent like those on the Hoffman Team can help you navigate the “stale listings“ inventory and get the best deal from product that has most likely been forgotten about by the school of hungry piranha-like buyers out there in the bloodbath waters — better known as NYC the real estate sales market!

Real Estate in the News

Luxury Home Sales Soar, Even Helping Houses That Languished on the Market for Months

Americans looking to buy a home have struggled with bidding wars and a limited number of houses for sale.

But one area of the cutthroat real estate landscape is improving. It's the luxury segment, where listings are up and homes are selling at a rapid clip. The demand is so great that even "white elephants" – high-end homes that sat on the market for months before the pandemic began – are selling quickly as their owners willingly splurge on remodeling projects to spruce them up.

Read more on USA Today

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Macy's 4th of July Fireworks

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