The pandemic has forced people to question whether now is the right time to look for condos for sale in the densely populated NYC.
Yes, NYC has been put to the test: Covid-19, ‘anarchist city‘, record unemployment, retail apocalypse, office apocalypse, MTA bailout, “NYC is dead forever“, people moving out, and the list goes on.
And then this happened: “Pfizer’s Early Data Shows Vaccine Is More Than 90% Effective.”
In reaction, NYC real estate stocks (here and here) shot up over 30%, and Zoom dropped 16% in one day.
This tells us that Wall Street believes that NYC will rebound when there is a vaccine.
(Update: As more announcements come, the prices of these stocks continue to rise)
According to Marketproof analysis, many NYC condo buyers believe this, too — and they didn’t wait for news of a vaccine to look for NYC condos for sale. Look at this chart for contracts signed for NYC condos, which shows a dip in activity from April thru June. Then in June, sales started picking back up again. Now the volume is where it was before the pandemic began.
Does an increase in volume mean NYC condo prices are going up?
Not yet.
Prices peaked in June 2018 and have been declining since. (Further reading: Why the SALT deduction is important for New Yorkers)
Covid-19 is simply continuing a trend that was already in motion.
One reason prices are declining is because the mix of what was built does not align with what people want, according to Marketproof Data. In addition, there are simply more NYC condos for sale than there are buyers right now.
So, if you are a buyer, now is the time to shop for a new condo. Depending on your appetite for risk, there are different strategies you can use.
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