As New York City is finally about to begin Phase 2 of New York Forward, I realize that many may not be aware of the current state of the New York City real estate market in the wake of the COVID-19 Pandemic. Contrary to what many might believe, closed prices for homes in Manhattan priced under $1.5 million have dropped by less than 4%, as evidenced by all-cash sales that were in contract prior to the Pandemic and that closed in the past 11 weeks, during the shutdown. On the other hand, for homes priced over $2.5 million, the discount for those all-cash buyers who had signed contracts prior to the Pandemic and closed in the past 11 weeks was an eye-popping 15-20%. It is truly a tale of two cities within New York City.
Given that inventory, year over year, it is down 80%. The lack of supply is the driving factor in the stability of the market for homes priced up to $1.5 million. Even during the shutdown, if a listing had video, there is a good chance that it received offers and even entered into a signed contract. Those homes that went into contract during the past 11 weeks should all close in the next 45-105 days.
Most importantly, all of my loved ones are healthy, albeit a bit tired of being sheltered in place for almost three months. It has been hardest on the children, who for the past three to four weeks keep asking “When will this COVID thing end?” Let’s all hope and pray that the end truly is near, and that we will soon return to what we knew as normal.
Stay safe. Stay healthy.