First a once-in-a-generation global pandemic brought the city to its knees. Then proud and mighty protests took hold of the city, blemished to an extent by looting and violence from protestors and the police. The mayor even ordered a curfew in the city that never sleeps. Crazy times…
We’ve seen a hundred articles and emails speculating about a mass exodus from New York City. Could that really happen?
The Espinal Adler Team has seen this before. The New York City market always come back, and just as importantly; the people can’t stay away. The human spirit comes alive when New York City is at its best. It has too much to offer. People can’t resist the arts, or the food, or the sounds, or the vibe, or all of the other interesting people.
Of course, there are some who will leave; Those who have grown anxious amid the chaos, and those who were destined to say goodbye might just walk away sooner than they thought they would. Anecdotally, we are hearing that listings outside the city are moving faster and homes that sat for months at a time are now getting offers. The story has a little bite, we’re just figuring out if it’s worse than the bark.
This week we sent a short video reminding our clients that the Espinal Adler Team has members with a local presence in Westchester and further north, as well as Long Island and even Miami. Our trusted referral network stretches beyond that, to many other parts of the country and the globe. We bring it up here, because we don’t want our readers to assume that we only work in Manhattan and Brooklyn. If you’re thinking of leaving and you need help with an exit strategy and finding the ideal landing place, we’d love to help you formulate a plan.
An exodus on any scale would put even more downward pressure on NYC sellers than there already was. That does create opportunity for individuals buying primary residences and for investors who are building or adding to their real estate portfolio. One prominent NYC mortgage banker told us some developers were offering credits toward closing costs totaling 6% of the purchase price, and they’re also agreeing to pay three or more years of common charges – this on top of price reductions.
A new wave of buyers will come because of the combination of lower prices, massive seller concessions, and historically low interest rates will make the numbers too attractive to ignore. That, and everything we said about New York City and what it does for the human spirit. Buyers who thought a NYC apartment was out of their reach will recognize that it’s time to make their move and investors will watch cap rates get better every day, and they’ll take advantage too.
The long-term prospects in New York are bright because past precedent tells us the market will bounce back – We saw it happen after 9/11 and we saw it happen again after the economy crashed in 2008. But there are other tangible reasons to believe. Just as they did when the market corrected itself after 08, there are several hedge funds ready to pounce right now, snatching up as many apartments as they can. We’re guessing they wouldn’t take a multi-billion-dollar gamble on real estate if they haven’t done their homework.
Whether you want to start over someplace else, or if you sense the timing is right to make a purchase in the city, there is a lot of information to sift through. Helping you make sense of it all during what is arguably the most unpredictable year that mankind has ever witnessed is a responsibility we don’t take lightly. Call us.