As COVID-19 spread last year and the country began to close, many New Yorkers packed up and moved to less dense areas. Now the market is picking up.
When COVID-19 spread and land started last year shut downMany New Yorkers packed up and moved to less dense areas. Now the state’s real estate market is starting to revive.
Last summer, the New York apartments reached theirs highest vacancy rate in 14 years when its residents emigrated from the city.
But there is hope for the state again as the end of the first quarter brought Manhattan highest level of home sales in the past 14 years. In March around 1,500 apartments in Manhattan were contractually for sale. This was the highest number of transactions in a month in 14 years, according to data from real estate analysis firm UrbanDigs. The number of contracts signed increased by 58 percent to 3,700 compared to the first quarter of the previous year. It was the highest total in the first quarter since 2007.
Unlike some other states that continued to do business during the pandemic and even saw real estate markets thrive, New York’s lockdown was severe. According to The Wall Street Journal“The Covid-19 crisis has dealt an amazing blow and downward pressure on the luxury real estate market in New York City that has exceeded both the 2008 financial crisis and the period immediately following the 9/11 terrorist attacks.”
But now residential property sales are bouncing back and thriving on the pent-up demand that has built up over the past year. House prices fell temporarily last year, as Manhattan cooperatives fell 3.8 percent and condo prices fell 4.7 percent. That fearful decline in residential property prices appears to be over, however, and UrbanDigs predicts that rising prices will be back at play by the end of the year.
In the United States, the economic situation of many Americans continues to improve. In total, the USA created 916,000 jobs in March, seasonally adjusted, the highest level since August. About 10,000 of these jobs were in real estate, according to the US Bureau of Labor Statistics.
And when their economic situation improves, their housing situation improves too. The latest data from Black Knight shows that for the fifth straight week – the longest trip since September – the volume of active indulgence has improved. The number of active plans declined another 33,000 from last Tuesday, a 1.3 percent decrease.
Overall, the number of active plans decreased by 172,000 last month – a 6.3 percent decrease. This is the strongest rate of improvement since the end of November 2020.
The USA and Manhattan are on the way to recovery, but not yet booming. While the increased interest in residential real estate in Manhattan is substantial, the real boom could come as companies start getting their employees back into the office.
A survey by the Partnership for New York City group of major employers found that 10 percent of office workers in Manhattan had returned to the office in early March. Respondents said an additional 45 percent of workers will be back in the office by September.
Email Kelsey Ramirez