The Third quarter of New York City’s 2020 Real Estate Market has slowly started to revive. Due to Covid’19 businesses were forced to shut down from mid-March until the last week of June, turning the city’s assets into its drawbacks. Then, owing to the extreme measures taken by the state government to keep people at home and properly masked, the infection rate decreased, leaving the city with a low virus case.
Manhattan ended Third Quarter 2020 on a positive note. Signed contracts were up 167% versus Second Quarter 2020. The third quarter has seen strong activity particularly in the market for properties costing $2 million and under; according to UrbanDigs, this price range has represented over 70% of all deals made since March 23.
The market in Brooklyn, which in relative terms has considerably more inventory priced at $2.5 million and under, has regained more optimism than that in Manhattan. Frequencies of competitive bidding are higher and mid-priced properties are trading more rapidly. The $4 million and up market in Brooklyn represents a considerably smaller slice of the total pie; it mostly encompasses luxury townhouses in Brooklyn Heights and Park Slope. They too move slowly in the current environment.
The rental market was hit much worse than the sale market. Offices all have work-from-home policies until 2021. As result, many tenants didn’t renew leases and moved out of Manhattan temporarily, to save on rent and because much more space is needed when everyone is working/schooling from home. Rental inventory increased 166 percent to 15,025 units and vacancy rate shot up to 5.1 percent.
While both sales volume and sales prices have dropped from pre-pandemic levels, and although sales inventory in Manhattan has soared to over 9000 units, real estate market shows increasing signs of transactional life each week.

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