“Is it a good time to invest in property and buy a house?” With the current market condition, this is the question that every New Yorker is asking themselves. The real estate market was hit pretty badly in 2020, and many businesses part of this industry collapsed. Although many residential areas of the US real estate market indeed continue to improve, one wonders that what is the state of the New York real estate market and what should be expected in 2021?
The latest records show that unemployment reached up to 9.6% in New York. As a result, many individuals were not able to pay their rent, which not only left many vacant apartments in the city, but the lowest rents in more than a decade were recorded. The median asking rents in New York dropped to $2,880. Landlords will likely be forced to lower rents in the future to attract tenants to New York rental properties in 2021. This may not be a permanent trend for the New York real estate market, but it’s likely to occur in 2021 before the economy fully recovers. Hence, it is predicted that the road to recovery in 2021 would be slow, which would reduce the rents even further.
Now let’s talk about the suburbs! The fallout from the pandemic led to people shifting to the suburbs as now companies are asking their employees to work remotely. Reports show that there was a 44% increase in home sales in the suburbs. This shift bought up house prices in those areas. It is expected that this migration trend will continue in the New York real estate market in 2021.
On the other hand, those who remained in the city were able to find a better home for a lesser price as cost prices of housing reduced. Manhattan home prices took a dip and continue to decrease, while the market condition of Brooklyn is completely different. The competitive real estate market in the area continues to push real estate prices higher. Moreover, by studying the current market trends, it is predicted that sales prices will increase by 26.65% in the next ten years.
Let’s move on to the last aspect of the real estate industry! Is New York a buyer’s market or a seller’s market? The buyers have already made a swift comeback since the lockdown was lifted in 2020. For sellers in New York, it is a great time to sell their property as motivated buyers are looking for houses to buy.
All in all, it is predicted that the real estate market would bounce back in 2021 once the pandemic ends!