In March of 2020, New York became the epicenter of the global COVID-19 pandemic, forcing the state to enact a series of pandemic restrictions. Many New Yorkers fled the city to suburban areas like Woodstock, Wappingers Falls, and Fairfield, Connecticut. Residential spaces went vacant, and asking prices increasingly dropped to lure buyers. Homeowners, uncertain of what the pandemic would bring, decided not to sell their homes, “afraid that they would not be able to find another affordable home.” As a result, the real estate market saw a significant decline in the purchase and sale of co-ops, condos, and houses.
However, in early 2021, schools began to reopen for in-person classes, more businesses opened their doors to the public, and employees slowly returned to the office. Many New Yorkers who had left the city to escape the coronavirus outbreak returned home and entered the real estate market, looking to purchase a home. Some were searching for more space than they had before, while others were simply ready to get out of the suburbs and into the hustle and bustle of New York City. With more and more sellers willing to let go of their homes and even more buyers eager to purchase, New York’s real estate market once again bloomed.
The housing inventory in New York City, however, has hit an unprecedented low as more buyers than sellers entered the market in late 2021. Fierce competition for co-ops, condos and houses in New York City ensued, “spurred by the same group that left the city at the start of the pandemic: affluent renters and buyers with the means to move.” Currently, it is predicted that New York’s real estate market will continue to be fierce in 2022 as buyers will try to lock in lower mortgage prices before the mortgage rate increase.
This is an exciting time in the market in NYC and there are new properties starting to come online for the spring market. We are hoping that New York City comes out of the winter stronger than ever. If you have any questions about buying or selling residential property in New York City, don’t hesitate to give us a call!