2021 New York Real Estate Outlook: Embrace the Optimism!
We saw Chase Bank using a new slogan: “Embrace the Optimism.” It’s a simple statement, but it really hit home for us because that is what we are trying to do right now. With vaccines just around the corner and hope with a Biden presidential administration, we are finally seeing a light at the end of the tunnel for 2021 New York real estate after such a strange year.
Year-End Real Estate Trends
2020 hasn’t been all bad, however. In fact, we’ve seen a nice resurgence in the New York City real estate market. A number of residents moved away from the city—at least temporarily—when COVID-19 hit, but they have been coming back and several markets are thriving. The high-end luxury housing market of Manhattan may take a little longer, but we see good things on the horizon after a couple of tough years.
We are quite confident the economy will bounce back as it always does. There will be a vaccine. New York City will be the epicenter of the world once again!
Headed in the Right Direction
Positive real estate trends are everywhere we look. In fact, the Manhattan luxury market continues to see numbers on the rise. The data has been steadily trending upward for the past three months. 14 homes in Manhattan that were asking $4 million or more went into contract the final full week of November. There were 25 entering into contract the week before. This was the highest weekly number since early March, when 27 high-value properties were sold at the beginning of the coronavirus crisis.
Our most recent sale was at 454 West 54th Street in Hell’s Kitchen, where we had listed a stunning condo with a fully upgraded chef’s kitchen, large primary bedroom suite, oak hardwood floors and floor-to-ceiling windows to let in plenty of natural light. This apartment went into contract after a multiple bid situation (always a positive sign).
Signs of Recovery
As we reported in our October and November blog posts, there are so many signs of market recovery throughout New York. This includes a significant surge in condo sales as buyers return to the city. New Yorkers like us will always believe in the city’s eventual recovery. The virus hit us hard in 2020, and this was on top of the Mansion Tax that caused low sales numbers in the second half of 2019.
Interest rates remain low, home prices have been reduced, the stock market has been hot and there is a lot of optimism about a vaccine that could be approved for distribution as soon as this month. It will take some time before everyone can get it. Just knowing it will be available in the near future is enough to restore a lot of confidence in current and future New York City residents.
2021 New York Real Estate Forecast
So, what can we expect from New York real estate in 2021 and beyond? As the vaccine is distributed and life slowly returns back to normal, we believe this upward trajectory will continue as the market continues its steady growth and recovery. Will we return completely to pre-Mansion Tax values and sales volumes? Probably not right away. However, real estate is always cyclical and Manhattan property will always be highly desired and valued. New buyers will keep coming into the city. Investors will buy and own income properties. Developers will keep reshaping the city skyline with new and amazing residential and commercial buildings.
We are certainly embracing the optimism for what 2021 will bring for the New York real estate market. We will learn from the past to build a brighter future. This is what New Yorkers do!
If you are ready to buy, rent or sell a home, condo or co-op in Manhattan, we’re here to serve you. Contact us today for a no-obligation real estate consultation and let us show you how we can help you get the absolute most out of your move.