Ask Annie: Optimism in the Air and in the Market

March 15th, 2021

More and more New Yorkers are being vaccinated. In-school classes are slowly resuming in many parts of the City. The ability to meet friends and safely dine indoors is gradually increasing, though the coming of spring will make outdoor dining more bearable. Art institutions–movies, theater and museums–are starting to reopen, and sports venues are beginning to welcome back spectators. New Yorkers who left the City when the pandemic hit are returning.

Admittedly, New York has a long way to go. Many shops and restaurants have closed, and offices are barely occupied as many have found “working from home” to be a safe and productive alternative. Nevertheless, there is a strong feeling of optimism in the air as we start to see light at the end of this dark time, and that optimism is certainly reflected in the residential real estate market where reduced prices and favorable interest rates combine to offer buyers many opportunities.

The number of signed contracts in January 2021 was twice that in January 2020, before the pandemic reached New York. In the luxury market, there were 40 signed contracts over $4 million in just one week at the end of February, a record last set in August 2016. Overall, February saw 144 contracts signed $4 million and above, a streak not seen since 2015.

The result of this momentum? Well-priced properties are beginning to see bids. Inventory in the high-end market is shrinking. Co-ops, which have had the longest number of days on market, are beginning to sell, now that sellers are recognizing the adjusted pricing of the market for the past year. Developers, eager to sell new construction inventory, are making significant concessions and negotiations.

Here are the latest Manhattan stats for the month of February 2021:

Source: UrbanDigs

Now more than ever the key to successfully selling an apartment is accurate pricing. And in today’s market, location and condition are two of the most important factors in determining the right price as it is almost impossible to compare where prices were 6-12 months ago.

This is indeed an unusual marketplace. To navigate it successfully, buyers and sellers need an experienced agent who is deeply in tune with pricing trends and available inventory. I’ve closed and have gone into contract on several exclusives over the past few months by pricing them correctly and marketing them effectively. I’ve helped buyers with the same knowledge I’ve gained from more than 25 years in the business.

Where are the best opportunities for buyers? Many apartments in need of gut renovations are available at very affordable prices. However, you must be prepare to go through the approval process with the building’s board and the City.

If you have the flexibility and patience, this is the place to find a diamond in the rough. If you prefer new construction, many developers are ready and eager to make deals. Rather than negotiating or lowering the asking price, these deals are often in the form of concessions (covering closing costs and other expenses, etc.). Concessions can make new development properties an attractive value, and provide a state-of-the-art home that’s immediately ready to move into.

If you haven’t guessed, I am feeling optimistic about the future of our beloved City and the residential real estate market. I’m grateful for my many clients–both buyers and sellers–who have kept me very busy the past few months!

Please feel free to contact me if you have any questions about starting your real estate journey, or if you need resources in any neighborhood. I work with clients across Manhattan, from the Upper East and West Sides to the Village, Chelsea and Tribeca. The Hamptons and Florida too!

Warmly,

Annie