Real Estate Listings Surge In New York After Market Reopens
The Real Estate is bouncing back after the COVID-19 pandemic brings difficulty to the market. The contract activity increased by 41% after New York City’s phase 2 reopening. It was the highest number since the end of March due to the coronavirus outbreak. We can recall that most markets have no choice but shut down while some business even has to close permanently. New real estate listings surged by 57% since the third week of June 2020 according to UrbanDigs’ data.
The increase in listings is down by 36% compared to last year’s rating. But given the difficulty we face today, the number is remarkable. The surge is bringing back brokers’ confidence and sees real estate ‘on a way out’ from a temporary dip.
The Data
Garrett Derderian, a GS Data Services- CEO, says that it was a remarkable recovery from the second quarter.
Derderian’s data showed that the median list price of $1,395,000 is up by 5% compared to last year. The average per-foot price is just down by just 3% to $1,560. Also, the high recovery level on the listings starts taking hold, as anticipated earlier this year like a V-shape.
The same happened in the markets in Seattle and Miami. Miami is seeing actual property trades increase than the previous year like the Northeast. That said, the tri-state area continues to relocate to Florida.
Jason Haber, Warburg Realty, said in an interview that there is also a lot of pent-up demand despite concerns.
Since June 1, there are 217 contracts signed in Manhattan. The decrease of 71% from the same time last year given its recent opening.
UrbanDigs and Derderian set data showing prices with no substantial decrease despite the crisis.
Experts’ Take
According to Derderian, the initial speculation was that prices will decrease from 10% to 20% yet that is not the case now. This can be good news for Manhattan’s housing market and real estate listing.
The workers can rely less on the transit and just opt to walk to work. Also, this could result in increasing the prices of units depending on the price point or neighborhood. The same goes for Brooklyn and its immediate surrounding neighborhoods.
The possibility of prices going down will be July, once we see a movement in the market. Most buyers look promising and fully committed on their investment. In a statement, Haber categorized buyers into two. The first are the ones who are short-term, they are the people who won’t invest during the pandemic. The second are those who see the potential soon, ones who want to invest long-term in the market.
A Compass broker, Michael J. Franco, said that due to many unknown factors today, the buyer’s profile believes in New York long-term.
The New Normal In Real Estate
Bill Kowalczuk of Warburg Realty Bill has explained that coronavirus changed the process of buying and viewing. This is despite the seen recovery in the market.
The potential buyer needed to schedule the viewing 24 hours before they get to see it in person. They also have to wear proper personal protection equipment. There is also a stack of forms they need to sign acknowledging the health risks. They won’t be allowed to touch any surfaces in the property, meaning the agent opens the doors and cabinets.
Expect to sign documents on limitation of liability and health questionnaire form when viewing a property. The members of the Real Estate Board of New York ask them to be given for customer safety.
Kowalczuk believes that people’s eagerness to move forward will drive a boom in the industry in the following weeks. We are yet to see what happens. Learn more about real estate listings and visit our website today!
