MARKET CONDITIONS AND PRICES OF MANHATTAN REAL ESTATE MOVING FORWARD
While economists look into their crystal bowls and speculate/predict post apocalyptic like scenarios for global economies, we owe it to ourselves to sit back, filter out the noise surrounding us and determine how this crisis will and has affected each one of us. Life is not perfect and no situation in our lives is ideal nor is it permanant; in the words of the late Sir Winston Churchill ” The pessimist sees difficulty in every opportunity. The optimist sees opportunity in every difficulty” Each person has to determine how they want to live their life and the importance of their place of shelter, we call HOME; for me, my home is a santuary that provides me with shelter, comfort and a sense of security from elements of the world including Covid-19. When I cross the threshold of my apartment regardless of the day I have had, I feel the warm, soothing comfort of my Manhattan size home, I can leave my problems at the threshold and bask in the cocoon of my kingdom, my home. Buying a home for most people is the single largest purchase of their lives. It deserves a lot of consideration, and regardless of the market conditions at the time of purchase it will be the best investment of their lives. Over the decades Manhattan real estate has had its share of peaks and valleys, however, at the end of every valley the peak soars higher than the previous peaks and that is a historical fact. No city in the world has the infrastructure like New York City nor the allure, and that is what attracts people from all over the world to it, all yearning to buy a piece of “The Apple.”
It is difficult to predict precisely how prices of residential properties will fare as we move forward in the late Spring and beyond. It’s clear it will depend on the supply of inventory. That will determine the absorption rate and that in turn will determine price moving going forward. Begining in early January of 2020 we saw certain segments of the market, especially below $ 2 million performing well. With limited,or in rare cases no negotiation, buyers were making offers and contracts were being signed. Then then the pandemic hit us and most consumers paused. Yet there have been some who sensed opportunity and chose to go forward and signed contracts after second and third showings that were conducted either virtually or in person with the seller where buildings allowed them. If the absorption remains between 6-9 months supply and closings are at the pre-corvid rate of 1,000 per month we will see prices holding firm and even going up in the $2 million and below price range in coveted neighborhoods with little to no inventory. The key factors will be location, condition and a little flexibilty on the part of the seller to help move negotiations along.