The consequences of COVID-19 in the longer run have been difficult to measure, especially due to the grave economic impacts the pandemic has had. Following over three months of lockdown in the city, New York City’s real estate market has gradually begun to pick up its pace again. With things slowly returning to normal, it is important for buyers and sellers to understand the current situation of the real estate market.
Since 2015, real estate price increases in various regions in New York City have stopped. Property values dropped by 10-20%, depending on factors such as location, property size, property type etc. Following the COVID-19 pandemic, these values further declined by 5-10%. For buyers, this is an excellent opportunity to hunt for and purchase homes. Many people are taking advantage of this, and are moving from the suburbs to the city, and from the city to the suburbs.
However, some residential properties are still popular, such as those that are located in good locations, have terraces, or are in excellent condition. For instance, people are now favoring smaller boutique buildings over larger properties with shared amenities. Due to a high demand, buyers cannot expect to secure a good price for such real estate. Still, interest rates and prices are lower than they have been before, and there may not be a better time to purchase residential properties.
On the other hand, sellers are at a disadvantage due to such substantial reductions in property values across the city. Some sellers may be tempted to inflate the value of their property, but this is not a good idea in the current market. Most sellers who have been able to rent or sell their homes have done so by pricing the property about 5-10% below the rate it would sell at prior to the pandemic.
Additionally, if you are planning to sell your house or apartment, you must be committed to preparing it for sale in the current market. There is a high inventory in both rental and selling markets, which makes it even more important to ensure that your property is attractive to potential tenants or buyers.
If your property has remained enlisted without receiving any offers, it is possibly due to issues with the property itself. In this case, you may find it useful to change the price while considering the condition, location, and type of property.
It is still vastly unclear what the long-term effects of the pandemic will be, and both buyers and sellers must make informed decisions during this time. However, regardless of the pandemic, it is obvious that the real estate market in New York City will soon be running the way it did previously. There are more and more listings each day, and realtors have witnessed an abundance of potential buyers and renters. While there are undoubtedly changes in the preferences of buyers, sellers can expect to quickly sale their property in the current market.