{August 2020} Buyers are out and demanding discounts. Sellers say hm I’m not sure.

The media has reported bidding wars and price increases around the nation since the real estate markets reopened in early summer.  But the NYC real estate market is not seeing these improvements yet.  In NYC, we do have an abundance of buyers and sellers, but fewer transactions than during normal times.  Inventory grew significantly since June.  The first 8 months of 2020 saw 15% less inventory than the first 8 months of 2019, but the number of listings in contract saw a 40% decline for the same 8-month period.  What’s interesting though, was that the Days on Market (DOM) for listings that did sell shrank significantly.  Listings that did go into contract spent only about two months on the market in August, the shortest marketing time since May 2019.  What this tells me is that listings that are desirable and priced right are quickly catching the buyers’ attention.  But, the majority of listings still do not price in a COVID discount.  Most sellers are not willing to sell into the lower prices. 

Economy is doing fine for people who are able to buy.  Otherwise we wouldn’t have seen the bidding wars in other parts of the country.  NYC is still suffering, because our offices are still empty and our entertainment is still not there.  What makes New York New York, is not back yet.  But would you argue against the creativity a crowd of people sparkle off of each other, eventually?

 Good Read

Are cities dying and suburbs booming?  Read more here.

---