New York City Real Estate Begins Its Recovery [UPDATED]

NYC skyline

Unfortunately for all of us, coronavirus has claimed lives, left many people without jobs, caused business failures, changed the rhythms of life and our routines. It also harmed the real estate market in NYC. Even though 2023 started as a promising year, with strong sales, Covid-19 kneecapped the market in March. For about three months, real estate agents could not show apartments, and all nonessential construction activity stopped. The number of potential buyers decreased, and NYC lost many residents. In the last year, around 300.000 New Yorkers saw a perfect opportunity for buying a home in the suburbs. However, recent signs of improvement have been reported, and New York City’s real estate professionals are now more optimistic. According to industry statistics, the worst of the pandemic’s impact on the market is already behind us, and New York City real estate begins its recovery.

Trends in the real estate market

NYC still has one of the most expensive and competitive housing markets in the nation, no matter how hard COVID-19 and job losses hit it. With the start of immunizations, 2023 begins with realistic hope. The number of recently signed contracts also gives a reason to be optimistic about months to come. Industry experts predict an excellent year for property owners as the city recovers.

Various business sectors are opening up, and NYC has had three consecutive months of sales increase. It seems that the market has bottomed out, and that is now on an upward trajectory. There are even bidding wars happening for townhouses, which didn’t happen for the previous eight years in a row. That’s because everybody wants a sense of privacy and an outdoor space that these properties have. There are even luxury townhouses with a market price of more than $7 million.

A widening socioeconomic divide is happening since affluent buyers continued to buy expensive apartments. On the other hand, entry-level buyers, who are more likely to be unemployed because of Covid-19, were practically absent on the market in the previous months, but that is also about to change.

New York city panorama
Industry statistics show that New York City real estate begins its recovery

Renters are in the best position

If you’re a renter, this is the best time for you. Rent prices are still down 25% to 30% in the city. Many landlords are willing to negotiate with tenants, and the longer you sign your lease, the better the deal you might catch. For example, if the lease term is 24 months, you may even be able to get 3 or 4 months for free.

What are buyers looking for?

Buyers typically search for larger homes. Apartments that sold last year typically measured 1,217 square feet, more than 2019. That’s probably because of increased interest in home offices. For buyers in New York, the mortgage rates are at their lowest, and sellers are returning to the market and listing more properties. If you’re a seller, now it’s the perfect time to sell your home fast because there is significant demand.

The high-end homes enjoyed an increase in market price in 2020, for more than 20 percent compared to 2019. Many real estate professionals were pleasantly surprised by how the year ended.

New York City real estate begins its recovery, and Brooklyn thrives

After the COVID crisis, as the real-estate market comes into relief, people are now more attracted to Brooklyn because it’s less dense and has some great offers. In the recent three months, Brooklyn had a 90% increase. That’s a positive surprise, giving everyone in the real estate business hope. It has a competitive scene that continues to push real estate prices higher.

For those who decided to move to Brooklyn, local movers can be of great help. They will not only help you settle in nicely but also ensure your belongings are fully protected and adequately cared for. You’ll be able to focus on your family or work while they find the perfect solution for your stress-free relocation.

Friends with face masks strolling in the street
Brooklyn is a great place to relocate because it’s less dense and has some great offers

Queens market has hope

New York City real estate begins its recovery, and Queens market appears optimistic, as it had a 70% increase in sales. That means sales are increasing faster than in Manhattan, with modest price growth. The reasons why Queens real estate market has more hope than Manhattan are:

  • Less concern for commute time
  • More outdoor space
  • Bigger apartments at lower prices

Manhattan is slowly bouncing back

While the Brooklyn market thrives and Queens follows, Manhattan has definitely had the hardest time bouncing back, both in sales and rentals. While the pandemic grew, buyers demanded about 10 percent discounts, or they simply walked away from deals.

In recent months Manhattan market slowly showed signs of some stabilization and resilience. Sales volume still didn’t increase, and Manhattan has not kept pace with the rest of the region yet. In 2020 sales of co-ops and condos in Manhattan had a nearly 30 percent drop compared to 2019. It’s hard for many people to find an apartment within the budget since prices didn’t collapse since the beginning of the coronavirus crisis.

Are you planning to relocate to NYC?

If you are among those planning to relocate to NYC, all these trends go in your favor. New York City real estate begins its recovery as businesses reopen, and you can still fetch a good sales price. When you decide on a neighborhood and find a perfect place to start anew, you just need to contact reliable NYC residential movers. They will transport your household items with great care, and soon you’ll successfully finish the process of settling down.

Businesswoman crossing a street
If you’re a homebuyer, now it’s time to fetch a good sales price

Final thoughts

No doubt that New York City real estate begins its recovery, but the full recovery depends on the speed and efficiency of vaccine distribution. It will help the whole economy and businesses to reopen with full capacity, and we hope no future shutdowns will happen. To sum things up, the market outlook appears fairly bright for Brooklyn, still uncertain for Queens, and probably still weak for Manhattan. That’s primarily because buyers’ interest in low population density areas has spiked. The good news is that in January, there was a decrease in unemployment claims, and there were gains in the New York rental market. Even though the real estate market in 2023 will face some challenges,  we have strong reasons to believe that it will bounce back as strong as it was before COVID-19 and maybe even stronger.

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