With the pandemic’s health impact continuing to hamper New York’s vibrant energy—from restaurants and bars, to Broadway theaters and concert venues—the current shift will be a drag on real estate markets into 2021. Moreover, as remote work policies extend into the second half of 2021, more folks will continue to look toward outlying areas. But New York’s allure is unlikely to diminish. Its attractiveness will just have to go through a re-pricing. In reality, it is just a phase in market development; the New York real estate industry is still “Alive and Very Much Kicking”, Opines Hirav Shah.
New York Real Estate Future In 2021
Future Of Real Estate In New York Okay, it’s no secret that since the pandemic began people have been moving out of New York City. Scaled up by civil unrest and the COVID 19 pandemic effects, moving out has been seen as the only viable option for NYC residents.
The question is, does the outward movement pose a fatal threat to the real estate business in New York City? Is the migration permanent, or will there be a return to normalcy, in the sense that the moving population will come back?
Different players in the real estate industry have perceived seasonal migration differently. For some, it might be the beginning of a permanent downscale for property prices. For others, it seems like a seasonal bump that will soon come to an end.
In reality, it is just a phase in market development; the NYC real estate industry is still ALIVE and KICKING, Opines Hirav Shah, The Most Influential Strategist, Adviser and Astrologer of the Real Estate World.
Now let’s look at the future of real estate in NYC, as outlined by Shah.
1. Focus On A Different World
The New York market has begun to show early signs of improvement in the first quarter of 2021 and it will see more and better and bigger improvement by the last quarter, Predicts Hirav Shah.
The year-long lockdown, and all the reporting about local families leaving town, pushed many sellers towards an acknowledgment of the new 2021 realities.
They reluctantly understood that, if they were to sell their properties, their prices needed to be adjusted. As that was happening, buyers were, for a variety of reasons, becoming more active in their home searches. For some New Yorkers that they were, the first four months of 2021 offered the opportunity to trade up to a better space for a less daunting price.
For some, proximity to schools and/or jobs became paramount. For others, staying at home for so long forced a realization that home was not all they might want it to be going forward. Everyone wants a home office now. Many people want outdoor space. A different world refocuses everyone’s priorities.
2. Market Optimism for New York
Even as the market for one and two-bedroom apartments began to heat up, deals also began to blossom for more expensive properties. Especially in the condominium market below 42nd Street, penthouses and large units have been going into contract at substantially discounted prices.
Numerous deals have been struck for these showpiece apartments, many of which have been available for one, two, even three years at enormous prices. Developers, many of whom face moments of reckoning with their lenders or simply want to stop the bleeding, have been going into contract and making strong deals for buyers with renovation allowances, payment of closing costs, and other enticements.
Sooner or later, markets find an equilibrium. That is taking place, long after the rest of the country, in Manhattan today. In Brooklyn, the market never slowed quite as much and picked up more quickly. 2021 has brought optimism to the New York market for the first time in years.
3. Residential Market To Show An Upward Trend for New York Real Estate
Since, the vaccine drive is happening and real fast that too, there is some hope also at the end of the tunnel.The pandemic disrupted but did not derail the larger meta-cycle of New York’s residential real estate flow. At this time last year, NY had a busier market as buyer and seller expectations came into alignment.
The pandemic misaligned those expectations for a while but now, a year later, people are once again at a moment of equilibrium in which deal flow is accelerating across New York City. Assuming the vaccine rollout continues and covers all (and hopefully becomes more organized) and stimulus dollars arrive to help our public transport system and our small businesses, optimism is palpable even as people all don double masks.
For the New York City residential market, the stars look auspicious.
4. 2021 Will Become The Year Of The Suburbs of New York Real Estate
Another indication of the New York market’s strength is that the suburbs are predominantly holiday and leisure places. For life, an inbred culture dictated a more relaxed environment upcountry while the city maintained the usual bustle.
The earlier regression to a vacation mood ignited by the pandemic earlier in the past year cannot be more of a signpost for the full transformation from city life to country living, but rather a mild break from the norm.
The suburbs earned all the attention due to lower rent prices, low interest mortgages, more land and hence, house sales in the suburbs started skyrocketing.
New York Real Estate Trends In 2021
The full recovery of the NYC real estate market and the economy as a whole depends on the potential future shutdowns in NYC, as well as the speed and efficiency of vaccine distribution which can help the businesses to reopen with full capacity.
Now let’s discuss the latest trends in the New York City real estate market.
1.Suburbs On The Focus for New York real estate market
NYC has been the epicenter of the pandemic. The fallout from the pandemic has led to people moving to suburbs, bidding up home prices in those places. On the other hand, those sticking around in the city have often been able to find a better home for less.
Manhattan home prices have dipped, while Brooklyn is defying gloomy economic conditions with a competitive scene that continues to push real estate prices higher.
2. Buyer’s Market for the New York City real estate market
– The NYC real estate market is currently a buyer’s market which means there are roughly more active homes for sale than there are buyers. The supply for housing is outpacing the demand favoring home buyers who are managing to hold good leverage in price negotiations.
3. Rental Market Trends in New York
New York City’s rental market has been significantly more impacted by the economic effects of COVID-19 than its housing market. Rents have been consistently declining since late March in New York City. But things are showing a sign of hope. The rental market is booming in NYC, with dirt-cheap prices attracting masses of new leases in Manhattan, Brooklyn, and Queens.
The best deals in New York City are in Queens.
Best Places To Invest In Real Estate In NYC
NYC real estate is a good investment because New York City is the most populous city in the United States.New York City has been ranked first among cities across the globe in attracting capital, business, and tourists.The highest no. of foreign investors choose NYC for real estate investment – Both commercial and residential real estate sectors.
1. Real Estate Investment in The Upper East Side, Manhattan
The Upper East Side or UES is a desirable area where almost no one can afford to buy real estate. It is a neighborhood in the borough of Manhattan in New York City. The tipping point is a measure of how long you have to live there to be better off buying than renting. Yet the area is home to a surprising number of relative bargains, and a good place for investing in NYC real estate.
2. Real Estate Investment in Inwood, Manhattan
Inwood is more affordable than other Manhattan neighborhoods. For example, buying is a better choice for potential residents after five years. For comparison, the tipping point for all of Manhattan is twelve years. Another point in favor of this area is that it isn’t seeing a wave of new development that hurt home values in Murray Hill. All of this is because Inwood is located at the very tip of Manhattan.
3. Other Options
Brooklyn and Queens are also good options for real estate investment in NYC.
It’s alive! Yes, the New York City real estate market is alive and is all set for an upward trend…Opines Hirav Shah.
Somehow the new year awoke in New Yorkers a realization of their commitment to life in the city. Low prices, at levels not seen since 2011, combined with record low interest rates and the new presidential administration galvanized buyers.
“Buying real estate is not only the best way, the quickest way, the safest way, but the only way to become wealthy.“