The Future Of NYC Real Estate Market After COVID-19 Looks Bright

By: Abdullah Haroon

The question in demand is what we crave to know, desperately. 2020 is turning out quite weird so far. With the pandemic which comes once in centuries, we wish to come out of it at the earliest. In our pursuit of survival, we cherish the memories of those who perished at the hands of the novel Corona.

Having said that, we want to know what the post COVID world would look like? Which trends would last and what kind of new patterns will arise on the horizon. And how will it affect the real estate market?

What how The Post COVID World Would Look Like?

The observation which makes the most sense is that it is going to be quite a new world post-COVID. The world cannot stay on halt for long enough and businesses are likely to reopen sooner than we expect but it is less likely that it will hold the same social norms in how humans used to interact. Regardless of how long Corona stays in the air, social distancing is going to last for quite a while now.

This trend is definitely changing the business style and traditional ways might not resume in the post-COVID world.

How Would The COVID-19 Transform The Real Estate Market?

The real estate sector was moving swiftly in the first couple of months of 2020 and the market was ready to cater to the demands of the spring season just before Corona appeared on the horizon. The activities were up 14% more than the first two months of 2019. However, in March, it saw a major decline in sales, and figures fell 15% in comparison to 2019. According to the experts, it’s going to be a roller coaster ride for the people in the real estate sector.

Since we were in complete lockdown in April and the fear of Corona had taken the best of us. There remained a 70-90% decline in this month compared to the figures of the previous year. Though it is a huge drop but was quite expected given how humans reacted to the situation. The alternative methods borrowed by the people in the real sector like going online and adopting virtual methods in place of personal visits remained ineffective for the most part.

It depends largely on the peak in Coronavirus infections, the sooner the better. As of July, authorities in the NYS have decided to resume economic activities for the most part. The reopening is subject to the implementation of laid down precautionary measurements and health protocols.

In the wake of the reopening of the business activities, analysts expect that it is likely to take six months for its revival. As per the expectations, sales are likely to go up by September.

The business activities which used to happen in spring in the real estate sector might happen in September and continue through the end of the year.

The Impact On Property Pricing:

Given the unexpected events for almost half of the year, the truth is there will be less activity around sales this year compared to the past. And if you ask how it is going to affect the prices? Well, prices are likely to take a down road as well. In the current scenario, prices are likely to fall to attract more buyers for now.

If we look at the bright side of things and shelf pessimism for a while things are already back to their former position with additional measures. After the reopening operation, the economy is recovering gradually from the ill effects of the corona. Unemployment is likely to decrease in the coming months.

On the flip side, in the short run, prices are likely to fall in the NYS by almost 11%. But it is going to witness a rise of 5% in 2021 and almost 4% in 2022 according to t the experts.

How You Should Respond?

It has been reiterated again and again and cannot be emphasized enough for the time being. If you are not forced by financial constraints to sell, you shall follow the policy of ‘wait and see’. The market is going to behave better and you are likely to make a better return on your property in the days ahead.

However, if you feel like selling now before the end of the year. You will get 2% and 10% less than what might lie in the store if you wait. Therefore, if you go on selling now, be mentally prepared to give discounts. Besides, it is likely to take longer than usual to find a potential customer in the days of the pandemic.

If you have already listed your home and it is available on the market. You might have to decrease the price unwillingly. For the safer side, a better way to evaluate price according to the situation is to ask 2-4% less than the current market value. It will help you in two ways. It is going to be sold quickly and you might see a price hike as more people will bid for the house.

For buyers, though virtual tours are well in vogue, buying a property without an in-person visit is still cannot be substituted therefore, now is not the best time to buy one.

Final Words:

The world is gradually coming out of shock and activities are switching off to normal mode. Things are going to be better sooner than expected as well in the real estate sector. Meanwhile, take good care of yourself and help your immediate family and neighbors to chip in your part in ‘flattening the curve’.

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