{June 2020} What Does the Real Estate Reopening Look Like?

We are in week two of the great reopening of the NYC real estate market, which resumed in-person showings on 6/22.  It has been very busy for me and many of my colleagues.  What we are seeing is that many buyers who have been looking before and during the lockdown, are excited to finally come out to see places for real.  This past week and a half we welcomed many focused buyers and quite a few contracts out as a result of the long-awaited physical showings.  I had 5 contracts out during this time and still many showings going into the weekend.  Prices, however, are ~5% lower than Feb levels.  If the sellers are willing to sell at these levels, there are many interested buyers.  Again, our market was starting to pick up at the end of 2019.  Now we are again ~5% lower than those levels and rates are even lower.  These two points seem to be enough compensation for the uncertainty we face for many buyers.  The rental market is down 10-15% from Feb levels.  My team put a dozen rental listings on the market recently.  We went through a price discovery phase once the market opened: crickets if we ask the same rent as Feb, some bites if we lower some and a normal amount of interest at 10-15% down. 

Even though we managed to put 3 difficult months behind us, the sentiment is still one of uncertainty.  With kids nowhere to go for the summer and unclear about the fall; with case numbers continuing to spike after all the sacrifices we have made, many people do not have the clarity of mind to focus and move forward.  To me, I do think this is a good time to buy.

Good Read:

Has a condo board ever exercised its right of first refusal?  Yes!  And a famous one!

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