The previous year was challenging for everyone. As coronavirus spread across the world, it affected the way we live and work. Many people lost their jobs, and many businesses and tourism came to a grinding halt. As a result, the economy suffered. New York real estate slowed at the beginning of the pandemic, together with the rest of the country. Covid-19 had the most significant impact on New York City, especially at the beginning of the pandemic. However, as we adapt to the situation and the vaccines become more available, things start to look up. There are signs of improvement on the market, and predictions for 2021 are way more optimistic. While there are many changes in the way the market works, it seems that New York real estate begins its recovery.
What has changed?
New York’s real estate market, especially NYC, is among the world’s most competitive and expensive markets. With the outbreak of covid-19 in March last year, all activity stopped. Real estate agents weren’t able to show the properties, and all but necessary construction activities came to a halt.
However, pent-up demand in the second half of 2020 drove the sales. Both sellers and buyers were back in the market. After all, people still need homes and make plans for the future. There has been a significant increase in sales, and it seems that New York real estate started to recuperate.
Of course, we all have to adapt. Priorities have changed, and health and safety come first. There are differences in what buyers want and prioritize when purchasing a home. Also, sellers are often staging and selling homes virtually.
Although we all wonder what to expect from real estate in 2021, things are looking much brighter. With the worst of the pandemic behind us, it seems that the real estate market will weather this storm.
Caption: Prospective buyers are looking for their dream homes
Alt.tag: a beautiful house with a white fence and trees
What are buyers looking for?
The pandemic and national lockdowns have brought substantial changes to the way we live. Our routines, pastimes, and the way we work have changed. Not only that, but they affected what buyers prioritize when home shopping.
For example, proximity to the workplace as well as public transport used to be a crucial factor. However, as more and more people work from home, it’s no longer the case. Buyers often opt for properties with home offices or enough space to build one. Similarly, more spacious homes with green outdoor spaces are high in demand. People value more privacy and room to pursue a healthy lifestyle during the lockdown.
Therefore, the previous months have seen a substantial increase in sales of residential properties, single-family homes, and townhouses. Low mortgage rates are encouraging for new buyers, and the good news is they are likely to stay low in 2021. Applications for purchase loans jumped significantly in the last few months while the number of unemployment claims decreased. These are all good signs that New York real estate is on its way to recovery.
What can sellers expect?
Sellers also have had to adapt to the new circumstances. Open houses seem to be the thing of the past, and most buyers are looking for homes online or even buying remotely. Therefore, virtual tours and communication are gaining popularity. Also, if you have a property to sell, it would be a good idea to consider some home upgrades to increase your home’s value. Focusing on home office, good Internet connection, and outdoor space is an excellent place to start.
While local markets generally depend on local trends and conditions, the situation looks brighter on the whole. Home prices are slowly going up, and they are mostly back to their pre-covid value, even higher in some markets. What’s more, listings spend less time on the market. There is even a need for more inventory to satisfy demand.
Although NYC was the epicenter of the pandemic outbreak last year, it’s showing great signs of recovery. It’s one of the world’s strongest markets, and housing prices are again on the rise, as well as residential sales. The hottest markets are in the boroughs outside Manhattan, such as Brooklyn and Queens. Also, markets in other parts of New York State are experiencing growth. For example, Syracuse and Rochester offer attractive yet affordable housing options and are currently seller’s markets.
Caption: Buying a rental property while the prices are low might be a good idea, as they are expected to grow in the future
Alt.tag: apartments aren’t in high demand in the New York real estate market
Renting or buying?
Many people are opting to buy a home and are looking for more suburban, less densely populated neighborhoods. They want more space and green areas where they can both work and spend time outdoors.
On the other hand, downtown condos and short-term rentals aren’t in high demand. For example, Manhattan has been hit hard. While residential sales remain flat, rent prices are 25 % to 30% lower. So, if you’re planning on renting, now is a perfect time. Landlords are more willing to negotiate, and the longer the lease, the better conditions you’ll get.
However, although more people work and study from home, the predictions are that the situation will change, especially in the latter half of the year. With the coming of the vaccine and the process of immunization, experts expect life to return to normal slowly. Therefore, it’s likely we’ll see a resurgence of rental trends, as well as prices going back up.
Caption: New York real estate begins its recovery and is expected to bounce back strong in 2021
Alt.tag: a house made of money
Relocation during pandemic
Whether you’re buying or renting, moving to your new home is often a daunting task. Packing and storage, as well as relocation itself, can be a stressful process. To simplify the move, consider teaming up with a professional moving company, simplifystorage.com, and make the whole process more manageable. Plus, your belongings will be well protected and delivered to you when you want them. Taking the necessary health and safety precautions is always a wise decision.
Although the New York real estate business faced unexpected difficulties last year, the general outlook for 2021 seems much brighter. The market is slowly recovering, and predictions are it will continue to grow and become stronger. Of course, there will still be challenges for the real estate industry to tackle this year. However, it appears that the worst of the pandemic’s impact on the market is behind us. New York real estate begins its recovery and is now following an upward trajectory.