The past twelve months have tested the resolve of the US real estate market. large cities like NYC have been particularly impacted by the pandemic as residents fled the city and opted to hunker down in smaller, more affordable, and less restrictive towns.
But while the COVID-19 pandemic is still ongoing, experts are already noticing the signs of a market bounce-back.
Strong Demand is Fueling the New York City Real Estate Market Rebond
The most notable trend that is starting to take shape in the New York City real estate market is the steep rise in demand. Speaking to CNN, a top broker had this to say about this development:
“We’re coming off a record number of signed contracts in the second quarter, and what’s driving that is buyers are seeing value. They’re sensing opportunity, and there’s a real sense of hope for an economic boom in September when it opens up.”
There is a strong belief in the market’s future prospects among brokers and real estate agents in the city. The fact that prices have stabilized relative to recent years is seen as a positive sign that could prompt more buying in following the months.
Inventory is at its Highest Levels in Years
One consequence of the pandemic has been the staggering increase in inventory. In fact, the numbers have reached record levels last year as sellers struggled to receive attractive offers. As a result, they are meeting buyers halfway and are more willing to sell for below-market value and accept terms that generally favor the buyer.
New York’s Outer Boroughs Have Weathered the Pandemic Quite Well
In stark contrast with Manhattan, the market in the outer boroughs has remained resilient throughout the pandemic. In fact, the dynamics that affected those areas have been the polar opposite of what took place in the city. As a matter of fact, the pandemic drove many residents away from the densely populated center as the boroughs emerged as a more spacious and affordable alternative.
The housing market in Queens has been especially resistant to the effects of the pandemic. According to the same broker, certain listings sold for up to 9% above their sale price of just three years ago. Demand has been particularly high for single family homes, with one of the broker’s properties receiving 50 showings in the first week.
New York Market Rebound: The Implications for Real Estate Investors
Market conditions that favor buyers are not going to last forever. This is the ideal time to jump in for investors who are looking to purchase investment properties at a relative discount. As this city continues to recover from the devastating impact of the pandemic, all metrics are expected to bounce back. This includes the price of properties, appreciation rate, and demand for rentals. Investing right now will allow buyers to capitalize on these trends and ride the wave of recovery that is sweeping the New York City real estate market.
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